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The the annual accounts of a Trading Company are to be made up to December 31st but it was not possible to carry out stock taking until January 5th at which date stock was valued at cost at rupees 68567 the following transactions to place between first and 5th January goods received Rs 4600 goods return 200 sales 100500 returns by customers rupees 625 the rate of gross profit is 25% of cost prepare the statement to show the valuation of stock as at December 31st?
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The the annual accounts of a Trading Company are to be made up to Dece...
Stock Valuation Statement as of December 31st
To prepare the stock valuation, we need to adjust the closing stock value based on transactions occurring between January 1st and January 5th.
Initial Stock Value
- Stock on January 5th (at cost): Rs 68,567
Adjustments for Transactions
1. Purchases:
- Goods received: Rs 4,600
2. Returns:
- Goods returned: Rs 200
3. Sales:
- Total sales made: Rs 100,500
- Returns by customers: Rs 625
Calculating the Adjusted Stock Value
- Net Purchases:
- Net purchases = Goods received - Goods returned
- Net purchases = 4,600 - 200 = Rs 4,400
- Total Sales (net):
- Net sales = Total sales - Returns by customers
- Net sales = 100,500 - 625 = Rs 99,875
Gross Profit Calculation
- Gross Profit Rate:
- Given gross profit rate = 25% of cost
- Cost of Goods Sold (COGS):
- COGS = Net sales / (1 + Gross Profit Rate)
- COGS = 99,875 / 1.25 = Rs 79,900
Adjusted Stock Calculation
- Closing Stock Calculation:
- Closing stock = Initial Stock + Net Purchases - COGS
- Closing stock = 68,567 + 4,400 - 79,900 = Rs -6,933 (indicating overstocking or incorrect sales figures)
Conclusion
- The valuation of stock as at December 31st reveals discrepancies, suggesting a need for further investigation into sales and inventory records.
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The the annual accounts of a Trading Company are to be made up to December 31st but it was not possible to carry out stock taking until January 5th at which date stock was valued at cost at rupees 68567 the following transactions to place between first and 5th January goods received Rs 4600 goods return 200 sales 100500 returns by customers rupees 625 the rate of gross profit is 25% of cost prepare the statement to show the valuation of stock as at December 31st?
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The the annual accounts of a Trading Company are to be made up to December 31st but it was not possible to carry out stock taking until January 5th at which date stock was valued at cost at rupees 68567 the following transactions to place between first and 5th January goods received Rs 4600 goods return 200 sales 100500 returns by customers rupees 625 the rate of gross profit is 25% of cost prepare the statement to show the valuation of stock as at December 31st? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about The the annual accounts of a Trading Company are to be made up to December 31st but it was not possible to carry out stock taking until January 5th at which date stock was valued at cost at rupees 68567 the following transactions to place between first and 5th January goods received Rs 4600 goods return 200 sales 100500 returns by customers rupees 625 the rate of gross profit is 25% of cost prepare the statement to show the valuation of stock as at December 31st? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The the annual accounts of a Trading Company are to be made up to December 31st but it was not possible to carry out stock taking until January 5th at which date stock was valued at cost at rupees 68567 the following transactions to place between first and 5th January goods received Rs 4600 goods return 200 sales 100500 returns by customers rupees 625 the rate of gross profit is 25% of cost prepare the statement to show the valuation of stock as at December 31st?.
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