Question

The stock was physically verified on 24th March and was valued at Rs.2,00,000. Goods are normally sold by the trader at a profit of 25% on cost. After stock taking the following transactions have taken place till 31^st March. Sales of Rs.2,21,600 which includes: 

(A) Sales of Rs.10,800 at 20% more than the normal selling price. 

(B) Sales of Rs.10,800 at 10% less than the normal selling price. Required: Determine the value of stock to be taken to the Balance Sheet of PCT Ltd. as at 31st March.

Answer 1

Statement Showing the Valuation of Stock As At 31^st March

Particulars	Rs.
A. Value of Stock as at 24th March  B. Less: Cost of Goods sold	2,00,000
Normal Sales [80% of (2,21,600 - 10,800 - 10,800]	(1,60,000)
Abnormal Sales [80% of (10,800 × 100/120)]	(7,200)
[80% of (10,800 × 100/90)]	(9,600)
C. Value of Stock as at 31st March	23,200