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)
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
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 | ||
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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..... |
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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
GP will be decrease by 20000
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