Stock reconciliation statement query

Others 674 views 3 replies

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 ?

Replies (3)

because rs 100 was sold after closing so it wont b a part of that na

agree with Mr.Bohra

u are trying to find the stock at 30th june...and stock of Rs 100 is sold after (as 300 is sold before) 30th june.

and the words "during the period" doesnt mean from 30th june to 7th july.

it means the year starting from the last stock taking to 7th july


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