Question:
Mr. Sen closes his account on 30th June every year. Due to some unavoidable reasons he could not take his stock on 30th June 2013, and physical stock was taken on 7th July 2013 which was valued at 22,500. Determine the value of stock on 30th June 2013. The following transaction took place from 1st July to 7th July 2013.
Return Inwards during the period amounted to 400 including 300 out of sales period to 30th June
2013 at a profit of 25% on cost.
Query : As per the solution given Return Inwards (300 * 100/125) = 240 is deducted from value of stock as on 7th July. Why is this so? Why didn't we deduct the whole return inwards of 400 ?
CAclubindia
