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At the end of the accounting year, material A costing Rs. 10,000 was having net realisable value of Rs. 9,500 only, while material B costing Rs.12,000 was having a net realisable value of Rs. 13,000 in the market and material C costing Rs. 15,000 was having net realisable value of Rs. 14,000 only. The total amount of closing inventory will be
  • a)
    Rs. 37,000.
  • b)
    Rs. 35,500.
  • c)
    Rs. 36,500.
  • d)
    Rs. 38,000.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
At the end of the accounting year, material A costing Rs. 10,000 was h...
Calculation of closing inventory based on net realisable value:

Material A:
- Costing: Rs. 10,000
- Net realisable value: Rs. 9,500
- Loss on material A: Rs. 500

Material B:
- Costing: Rs. 12,000
- Net realisable value: Rs. 13,000
- Gain on material B: Rs. 1,000

Material C:
- Costing: Rs. 15,000
- Net realisable value: Rs. 14,000
- Loss on material C: Rs. 1,000

Total gain/loss:
- Gain: Rs. 1,000
- Loss: Rs. 1,500
- Net loss: Rs. 500

Closing inventory calculation:
- Total cost of materials: Rs. 10,000 + Rs. 12,000 + Rs. 15,000 = Rs. 37,000
- Net loss on inventory: Rs. 500
- Closing inventory value: Rs. 37,000 - Rs. 500 = Rs. 35,500

Therefore, the correct answer is option B) Rs. 35,500.
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At the end of the accounting year, material A costing Rs. 10,000 was having net realisable value of Rs. 9,500 only, while material B costing Rs.12,000 was having a net realisable value of Rs. 13,000 in the market and material C costing Rs. 15,000 was having net realisable value of Rs. 14,000 only. The total amount of closing inventory will bea)Rs. 37,000.b)Rs. 35,500.c)Rs. 36,500.d)Rs. 38,000.Correct answer is option 'B'. Can you explain this answer?
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At the end of the accounting year, material A costing Rs. 10,000 was having net realisable value of Rs. 9,500 only, while material B costing Rs.12,000 was having a net realisable value of Rs. 13,000 in the market and material C costing Rs. 15,000 was having net realisable value of Rs. 14,000 only. The total amount of closing inventory will bea)Rs. 37,000.b)Rs. 35,500.c)Rs. 36,500.d)Rs. 38,000.Correct answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about At the end of the accounting year, material A costing Rs. 10,000 was having net realisable value of Rs. 9,500 only, while material B costing Rs.12,000 was having a net realisable value of Rs. 13,000 in the market and material C costing Rs. 15,000 was having net realisable value of Rs. 14,000 only. The total amount of closing inventory will bea)Rs. 37,000.b)Rs. 35,500.c)Rs. 36,500.d)Rs. 38,000.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for At the end of the accounting year, material A costing Rs. 10,000 was having net realisable value of Rs. 9,500 only, while material B costing Rs.12,000 was having a net realisable value of Rs. 13,000 in the market and material C costing Rs. 15,000 was having net realisable value of Rs. 14,000 only. The total amount of closing inventory will bea)Rs. 37,000.b)Rs. 35,500.c)Rs. 36,500.d)Rs. 38,000.Correct answer is option 'B'. Can you explain this answer?.
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