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A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet at
- a)Rs. 2,000
- b)Rs. 2,700
- c)Rs. 2,700 less 25% of Rs. 2,700
- d)Rs. 3,500
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on...
When unapproved goods are existing on last day of the year, then it should be included in closing stock and valued at cost and market value whichever is lower.
Cost of remaining goods = 3500−800=2700
Market value of remaining goods (including 25% profit on sale)= (2700/(100−25))×100=3600
So Stock on approval will be shown at 2700 in balance sheet.
Cost of remaining goods = 3500−800=2700
Market value of remaining goods (including 25% profit on sale)= (2700/(100−25))×100=3600
So Stock on approval will be shown at 2700 in balance sheet.
Most Upvoted Answer
A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on...
It's easy.. Concentrate on question.. Sometimes they give extra information in questions just to confuse you.. Answer is simple.. TOTAL COST - 3500 SOLD TO B AND THEN B RETURNED 800 SO 3500-800=2700
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A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on...
Calculation of Profit and Cost Price:
To find the cost price and profit, we need to calculate the selling price first. The selling price can be calculated using the formula:
Selling Price = Cost Price + Profit
Given:
Profit = 25%
Selling Price = Rs. 3,500
Let's calculate the cost price using the formula:
Cost Price = Selling Price - Profit
Cost Price = Rs. 3,500 - (25% of Rs. 3,500)
Cost Price = Rs. 3,500 - (0.25 * Rs. 3,500)
Cost Price = Rs. 3,500 - Rs. 875
Cost Price = Rs. 2,625
So, the cost price of the goods is Rs. 2,625.
Return of Goods:
Next, B returns goods costing Rs. 800 to A. This means that A now has goods worth Rs. 800 less in his possession.
Stock on Approval:
The remaining goods are neither returned nor approved by A. Therefore, the stock on approval is the value of goods that A has sent to B but have not been returned or approved.
The stock on approval can be calculated as follows:
Stock on Approval = Cost Price - Return of Goods
Stock on Approval = Rs. 2,625 - Rs. 800
Stock on Approval = Rs. 1,825
Therefore, the stock on approval is Rs. 1,825.
Showcasing in Balance Sheet:
The stock on approval is an asset for A as it represents the value of goods that are in B's possession but have not been returned or approved. This asset needs to be shown in the balance sheet.
The stock on approval will be shown in the balance sheet as follows:
Stock on Approval = Rs. 1,825
Therefore, the correct option is B) Rs. 2,700.
To find the cost price and profit, we need to calculate the selling price first. The selling price can be calculated using the formula:
Selling Price = Cost Price + Profit
Given:
Profit = 25%
Selling Price = Rs. 3,500
Let's calculate the cost price using the formula:
Cost Price = Selling Price - Profit
Cost Price = Rs. 3,500 - (25% of Rs. 3,500)
Cost Price = Rs. 3,500 - (0.25 * Rs. 3,500)
Cost Price = Rs. 3,500 - Rs. 875
Cost Price = Rs. 2,625
So, the cost price of the goods is Rs. 2,625.
Return of Goods:
Next, B returns goods costing Rs. 800 to A. This means that A now has goods worth Rs. 800 less in his possession.
Stock on Approval:
The remaining goods are neither returned nor approved by A. Therefore, the stock on approval is the value of goods that A has sent to B but have not been returned or approved.
The stock on approval can be calculated as follows:
Stock on Approval = Cost Price - Return of Goods
Stock on Approval = Rs. 2,625 - Rs. 800
Stock on Approval = Rs. 1,825
Therefore, the stock on approval is Rs. 1,825.
Showcasing in Balance Sheet:
The stock on approval is an asset for A as it represents the value of goods that are in B's possession but have not been returned or approved. This asset needs to be shown in the balance sheet.
The stock on approval will be shown in the balance sheet as follows:
Stock on Approval = Rs. 1,825
Therefore, the correct option is B) Rs. 2,700.
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A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer?
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A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. 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 A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. 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 A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer?.
A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. 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 A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. 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 A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer?.
Solutions for A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A sent some goods costing Rs. 3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing to A Rs. 800. At the end of the accounting period i.e. on 31st December, 2016, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet ata)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of Rs. 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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