Solve please

What is the effect on Gross profit, if closing
stock is undervalued by Rs.10,000 and opening
stock is overvalued by Rs.10,000?
a) G.P. will increase by Rs.10,000
b) G.P. will decrease by Rs.10,000
c) G.P. will decrease by Rs.20,000
d) No change in G.P.

explain how it is

according to me it is (d)

Replies (14)

GROSS PROFIT =  sale + closing stock- opening stock-purchse-direct cost

eg = 300000+20000-100000-90000-35000= 95000

now if  closing stock is undervalued by 10000 , closing is 20000-10000=10000

& opening stock is overvalued by 10000= 100000+10000=110000

now GP = 300000+10000-110000-90000-35000=75000

answer is (d)  G.P. will decrease by Rs.20,000
 

ans is (c) ie gp will dec by rs 20000

answer is 20000 of gross profit,decreases as closing stock decreases then g.p decreases.

 

 

since opening stock is over valued by 10,000 it will decrease gp by 10,000. next closing stock is undervalued by 10,000 it will again decrease gp by 10,000... so totally gp goes down by 20,000.....

everyone above is right .. 

Ans. is G.P. will decrease by Rs. 20,000/=

Originally posted by : divyalakshmi

since opening stock is over valued by 10,000 it will decrease gp by 10,000. next closing stock is undervalued by 10,000 it will again decrease gp by 10,000... so totally gp goes down by 20,000.....


 

Gp will decrease by 20000

GP will decrease by rs 20,000 (option c)

GP will decrease by Rs. 20,000

 

GP IS DECREASE BY RS 20000.

GP will decrease by rs 20,000

option C is correct majority of answers right here GP will decrease by 20000.

 

GP will be decrease by 20000

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details