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Average inventory = Rs.30,000. Closing Inventory is Rs. 5,000 more than opening inventory. Then the value of closing inventory will be
  • a)
    Rs.32,500
  • b)
    Rs.35,000
  • c)
    Rs.30,000
  • d)
    Rs.60,000
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Average inventory = Rs.30,000. Closing Inventory is Rs. 5,000 more tha...
Given:
Average inventory = Rs. 30,000
Closing Inventory = Opening Inventory + Rs. 5,000

To find:
Value of Closing Inventory

Solution:
Let's assume that the opening inventory is x.
Then, according to the given information, the closing inventory will be (x + Rs. 5,000).

Now, we know that the average inventory is Rs. 30,000.
Therefore, we can write the following equation:

Average inventory = (Opening inventory + Closing inventory) ÷ 2

Substituting the values, we get:

Rs. 30,000 = (x + x + Rs. 5,000) ÷ 2
Rs. 60,000 = 2x + Rs. 5,000
Rs. 55,000 = 2x
x = Rs. 27,500

So, the opening inventory is Rs. 27,500.
Therefore, the closing inventory will be (Rs. 27,500 + Rs. 5,000) = Rs. 32,500.

Hence, the value of closing inventory is Rs. 32,500, which is option A.
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Average inventory = Rs.30,000. Closing Inventory is Rs. 5,000 more tha...
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Average inventory = Rs.30,000. Closing Inventory is Rs. 5,000 more than opening inventory. Then the value of closing inventory will bea)Rs.32,500b)Rs.35,000c)Rs.30,000d)Rs.60,000Correct answer is option 'A'. Can you explain this answer?
Question Description
Average inventory = Rs.30,000. Closing Inventory is Rs. 5,000 more than opening inventory. Then the value of closing inventory will bea)Rs.32,500b)Rs.35,000c)Rs.30,000d)Rs.60,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Average inventory = Rs.30,000. Closing Inventory is Rs. 5,000 more than opening inventory. Then the value of closing inventory will bea)Rs.32,500b)Rs.35,000c)Rs.30,000d)Rs.60,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Average inventory = Rs.30,000. Closing Inventory is Rs. 5,000 more than opening inventory. Then the value of closing inventory will bea)Rs.32,500b)Rs.35,000c)Rs.30,000d)Rs.60,000Correct answer is option 'A'. Can you explain this answer?.
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