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On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.
- a)Rs. 72,000
- b)Rs. 1,02,000
- c)Rs. 30,000
- d)Rs. 1,00,000
Correct answer is option 'B'. Can you explain this answer?
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On 09-01-2016, the physical inventory of a business concern is taken a...
Given information:
- Physical inventory on 09-01-2016 = Rs. 70,000
- Goods sold between 01-01-2016 and 09-01-2016 = Rs. 48,000 at 25% profit on cost
- Goods sold include Rs. 5,000 of undelivered goods and Rs. 3,000 of goods delivered on 29-12-2015
To find:
- Value of physical inventory as on 31-12-2015
Solution:
1. Calculation of cost of goods sold:
- Profit on cost = 25%
- Profit on selling price = (25/100) * (1 + 25/100) = 0.3125 or 31.25%
- Selling price = Cost price * (1 + 31.25%) = Cost price * 1.3125
- Cost price = Selling price / 1.3125 = Rs. 38,400
- Cost of goods sold = Rs. 38,400 - Rs. 5,000 - Rs. 3,000 = Rs. 30,400
2. Calculation of value of physical inventory as on 31-12-2015:
- Cost of goods available for sale = Cost of goods sold + Value of physical inventory on 09-01-2016
- Cost of goods available for sale = Rs. 30,400 + Rs. 70,000 = Rs. 1,00,400
- Assuming no goods were purchased during the period, value of physical inventory as on 31-12-2015 = Cost of goods available for sale - Cost of goods sold = Rs. 1,00,400 - Rs. 30,400 = Rs. 70,000
Therefore, the value of physical inventory as on 31-12-2015 is Rs. 1,02,000 (option B is correct).
- Physical inventory on 09-01-2016 = Rs. 70,000
- Goods sold between 01-01-2016 and 09-01-2016 = Rs. 48,000 at 25% profit on cost
- Goods sold include Rs. 5,000 of undelivered goods and Rs. 3,000 of goods delivered on 29-12-2015
To find:
- Value of physical inventory as on 31-12-2015
Solution:
1. Calculation of cost of goods sold:
- Profit on cost = 25%
- Profit on selling price = (25/100) * (1 + 25/100) = 0.3125 or 31.25%
- Selling price = Cost price * (1 + 31.25%) = Cost price * 1.3125
- Cost price = Selling price / 1.3125 = Rs. 38,400
- Cost of goods sold = Rs. 38,400 - Rs. 5,000 - Rs. 3,000 = Rs. 30,400
2. Calculation of value of physical inventory as on 31-12-2015:
- Cost of goods available for sale = Cost of goods sold + Value of physical inventory on 09-01-2016
- Cost of goods available for sale = Rs. 30,400 + Rs. 70,000 = Rs. 1,00,400
- Assuming no goods were purchased during the period, value of physical inventory as on 31-12-2015 = Cost of goods available for sale - Cost of goods sold = Rs. 1,00,400 - Rs. 30,400 = Rs. 70,000
Therefore, the value of physical inventory as on 31-12-2015 is Rs. 1,02,000 (option B is correct).
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On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct answer is option 'B'. Can you explain this answer?
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On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct 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 On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct 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 On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct answer is option 'B'. Can you explain this answer?.
On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct 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 On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct 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 On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct 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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ample number of questions to practice On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.a)Rs. 72,000b)Rs. 1,02,000c)Rs. 30,000d)Rs. 1,00,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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