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A sent some goods costing Rs. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:
- a)Rs. 2,000
- b)Rs. 2,700
- c)Rs. 2,700 less 25% of 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. 3500 at a profit of 25% on sale to B on ...
rs 2700 since rs800 goods are already returned and rs3000 being the cost...should be reduced by rs800...thereby stock unsold will be rs3000--rs800= rs2700
Most Upvoted Answer
A sent some goods costing Rs. 3500 at a profit of 25% on sale to B on ...
Given:
Cost of goods sold by A to B = Rs. 3500
Profit on sale = 25%
Goods returned by B = Rs. 800
Remaining goods not approved by B = ?
Calculations:
1. Sale price of goods sold by A to B:
Profit on sale = 25%
Profit = (25/100)*3500 = Rs. 875
Sale price = Cost price + Profit = 3500 + 875 = Rs. 4375
2. Goods returned by B:
Cost of goods returned = Rs. 800
3. Remaining goods not approved by B:
Let the cost of remaining goods be x.
Total goods sent by A to B = Cost of goods sold + Cost of goods returned + Cost of remaining goods
Total goods sent = 3500 + 800 + x = 4300 + x
As the remaining goods were not approved by B, A still owns them. Therefore, the value of these goods will be added to A's inventory.
4. Value of remaining goods on approval:
As per the question, the remaining goods were not returned or approved by B. Therefore, their value will be shown in the balance sheet as inventory.
Value of remaining goods = Cost of remaining goods
= x
Thus, the value of remaining goods not approved by B will be Rs. x.
5. Finding the value of x:
As per step 3, Total goods sent = 4300 + x
Out of which, goods returned by B = Rs. 800
Therefore, the goods not returned or approved by B = Total goods sent - Goods returned by B
= (4300 + x) - 800
= 3500 + x
Now, we know that the value of goods on sale was Rs. 4375. Therefore,
Value of goods not approved by B + Value of goods returned by B = Sale price of goods
x + 800 = 4375
x = 4375 - 800 = 3575
Therefore, the value of remaining goods not approved by B will be Rs. 3575.
Answer:
The value of remaining goods on approval will be shown in the balance sheet at Rs. 2,700 (i.e., 3575 - 25% of 3575).
Cost of goods sold by A to B = Rs. 3500
Profit on sale = 25%
Goods returned by B = Rs. 800
Remaining goods not approved by B = ?
Calculations:
1. Sale price of goods sold by A to B:
Profit on sale = 25%
Profit = (25/100)*3500 = Rs. 875
Sale price = Cost price + Profit = 3500 + 875 = Rs. 4375
2. Goods returned by B:
Cost of goods returned = Rs. 800
3. Remaining goods not approved by B:
Let the cost of remaining goods be x.
Total goods sent by A to B = Cost of goods sold + Cost of goods returned + Cost of remaining goods
Total goods sent = 3500 + 800 + x = 4300 + x
As the remaining goods were not approved by B, A still owns them. Therefore, the value of these goods will be added to A's inventory.
4. Value of remaining goods on approval:
As per the question, the remaining goods were not returned or approved by B. Therefore, their value will be shown in the balance sheet as inventory.
Value of remaining goods = Cost of remaining goods
= x
Thus, the value of remaining goods not approved by B will be Rs. x.
5. Finding the value of x:
As per step 3, Total goods sent = 4300 + x
Out of which, goods returned by B = Rs. 800
Therefore, the goods not returned or approved by B = Total goods sent - Goods returned by B
= (4300 + x) - 800
= 3500 + x
Now, we know that the value of goods on sale was Rs. 4375. Therefore,
Value of goods not approved by B + Value of goods returned by B = Sale price of goods
x + 800 = 4375
x = 4375 - 800 = 3575
Therefore, the value of remaining goods not approved by B will be Rs. 3575.
Answer:
The value of remaining goods on approval will be shown in the balance sheet at Rs. 2,700 (i.e., 3575 - 25% of 3575).
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A sent some goods costing Rs. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer?
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A sent some goods costing Rs. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 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. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 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. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer?.
A sent some goods costing Rs. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 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. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 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. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer?.
Solutions for A sent some goods costing Rs. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 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. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 2,700d)Rs. 3,500Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A sent some goods costing Rs. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 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. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 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. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:a)Rs. 2,000b)Rs. 2,700c)Rs. 2,700 less 25% of 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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