Q/- Chetan Ltd recorded the following information as on 31st ,2004
stock(1-4-03) Rs40,000
Purchases Rs80,000
sales Rs100,000
Itis noticed that goods worth Rs30,000 were destroyed due to fire against this, insurance company accepted the claim of Rs14,000.
The company sells good at cost 33%.The value of closing inventory,after taking into account the above transation is
(A)75,000 (B)15000 (C)25000 (D)NIL
PLEASE SOLVE ABOVE QUESTION STEP BY STEP ,LET ME KNOW HOW TO SOLVE IT
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 06 June 2012
the given profit % is on cost or sales?
intermediate(ipc)course
(no)
(1460 Points)
Replied 06 June 2012
closing inventory = 53200*+80000-1000000+14000-30000 = 17200
*profit 33% on cost = 40000+33% on 40000 = 53200
Akshita
(student)
(108 Points)
Replied 06 June 2012
i am getting the answer 15000 but by taking profit at the rate of (100/3)%...
because if we have opening stock 40000 and purchases 80000... this implies that we have goods worth 1,20,000 which we can sell...
now goods worth Rs. 30,000 were destroyed by fire.. and that leaves us with goods worth Rs. 90,000 to sell...
also.. if the rate of profit on sale is taken to be (100/3)%, then the rate of profit on sales will be 25%...
thus 25% of 1,00,000 is 25000...
we know selling price - profit = cost
so 1,00,000 - 25,000 = 75000..
so closing stock is 90,000 - 75,000.. that is 15,000
you get the answer a lot quicker if you solve it by making trading account.... but just check the rate of profit...
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 06 June 2012
profit ratio u entered is wrong... it should be 33.33% on cost or 25 % on sales
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 06 June 2012
@ aksh*ta.. Manish made a mistake in profit ratio.... it should be 33.33% on cost or 25% on sales
Akshita
(student)
(108 Points)
Replied 06 June 2012
ya... i wrote the solution above.. anyways thanks...
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 06 June 2012
@ aksh*ta .... ok urs welcome
lokesh
(CA FINAL)
(81 Points)
Replied 07 June 2012
Piyush has given the perfect answer in a required form
ADITYA MAHESHWARI
(STUDENT)
(59 Points)
Replied 07 June 2012
Answer Will be Rs. 15,000
It goes this way,
Opening Stock- Rs.40,000
Add: Purchases- Rs.80,000
Less: Goods Sold( at Cost) (Rs.75,000)
(1,00,000-25%)
Less: Goods Destroyed (Rs.30,000)
Rs.15,000
RANJEET
(PROPRIETOR)
(28 Points)
Replied 07 June 2012
 |
------------------------------------------------------------------------------------------------------------------------ Op. Stock 40000 Sales 100000 Purchase 80000 Closing Stock (Bal. figure) 15000 Less: Loss by fire 30000 50000 Gross Profit 100000*33.33/133.33 25000 ------------ ------------- 115000 115000 |
 |
RANJEET
(PROPRIETOR)
(28 Points)
Replied 07 June 2012
TRADING A/C
------------------------------------------------------------------------------------------------------------------------
Op. Stock 40000 Sales 100000
Purchase 80000 Closing Stock (Bal. figure) 15000
Less: Loss by fire 30000 50000
Gross Profit 100000*33.33/133.33 25000
------------ -------------
115000 115000
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