CA Foundation Exam  >  CA Foundation Questions  >  Chetan Ltd. recorded the following informatio... Start Learning for Free
Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL?
Most Upvoted Answer
Chetan Ltd. recorded the following information as March 31,2010 Invent...
Calculation of Cost of Goods Sold (COGS)

- Opening Inventory (1-4-2009) = 40000
- Purchases = 80000
- Total Cost of Goods Available for Sale = 120000
- Cost of Goods Sold = Total Cost of Goods Available for Sale - Closing Inventory
- Cost of Goods Sold = 120000 - Closing Inventory

Adjustment for Goods Destroyed

- Goods Destroyed due to Fire = 30000
- Insurance Claim Accepted = 14000
- Adjusted Cost of Goods Sold = Cost of Goods Sold - (Goods Destroyed - Insurance Claim Accepted)
- Adjusted Cost of Goods Sold = 120000 - (30000 - 14000)
- Adjusted Cost of Goods Sold = 104000

Calculation of Sales

- Sales = 100000
- Markup on Cost = 33.33%
- Markup on Selling Price = Markup on Cost / (1 - Markup on Cost)
- Markup on Selling Price = 33.33% / (1 - 33.33%)
- Markup on Selling Price = 50%
- Selling Price = Cost + Markup on Selling Price * Cost
- Selling Price = Cost * 1.5

Calculation of Closing Inventory

- Gross Profit Margin = (Selling Price - Cost) / Selling Price
- Gross Profit Margin = (1.5 - 1) / 1.5
- Gross Profit Margin = 0.3333
- Closing Inventory = (Adjusted Cost of Goods Sold + Gross Profit) - Sales
- Closing Inventory = (104000 + 0.3333 * 104000) - 100000
- Closing Inventory = 25000

Answer: The value of closing inventory, after taking into account the above transaction is C) 25000.
Community Answer
Chetan Ltd. recorded the following information as March 31,2010 Invent...
Total goods is os+pur=40000+80000=120000sales is 100000 and profit is 33.33 in cost sooo 1/4 of sales ....profit is 100000×1/4=25000.....75000 is cost loss of goods 30000....120000-75000-30000= 15000ans= 15000
Explore Courses for CA Foundation exam
Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL?
Question Description
Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL? 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 Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL?.
Solutions for Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL? defined & explained in the simplest way possible. Besides giving the explanation of Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL?, a detailed solution for Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL? has been provided alongside types of Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL? theory, EduRev gives you an ample number of questions to practice Chetan Ltd. recorded the following information as March 31,2010 Inventory (1-4-2009)-40000 purchase-80000 sales-100000 it is noticed that goods worth 30000 were destroyed due to fire against this,the insurance company accepted of claim of 14000. the company sells goods at cost plus 33.33%.The value of closing Inventory, after taking into account the above transaction is a)75000 b)15000 c)25000 d)NIL? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev