Sale of goods on approval or return basis

CPT 756 views 2 replies

Hi friends,

A sent some goods costing 3500 at a profit of 25% on sale to B on sale or return basis B returned goods costing 800. At the end of the accounting period on 31st december 2011 the remainig goods were neither returned nor approved by him .the stock on approval will be shown in the balace sheet at what price ..?

Replies (2)
goods remain for Approvel Rs.3500-800 = Rs.2700. . . . .. . so, cost of good to be shown in Balance Sheet will be 2700X75/100 =Rs. 2025.
sorry, R.Pavithra, i'm wrong Above the amount to be shown in balance Sheet will be only Rs.2700 i.e3500-800 . . . You Have to do nothing with 25% as cost of good is itself Given.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register