CA Foundation Exam  >  CA Foundation Questions  >  Physical verification of stock was done on 23... Start Learning for Free
Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –
1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.
2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.
3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.
You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.
 
Q.Cost of Normal Sales = _______.
  • a)
    73,600
  • b)
    80,000
  • c)
    1,08,800
  • d)
    99,200
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Physical verification of stock was done on 23rd june. the value of sto...
Cost of Normal Sales Calculation

The cost of normal sales can be calculated using the following formula:

Cost of Goods Sold = Opening Stock + Purchases - Closing Stock

Here, we are given the value of physical stock on 23rd June, which is Rs 4,80,000. We need to calculate the value of closing stock on 30th June, taking into account the following transactions:

1. Out of goods sent on consignment, goods costing Rs 24,000 were unsold.
2. Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.
3. Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs 24,000 had been sold for Rs 12,000.

Let's calculate the cost of normal sales using the above formula:

Opening Stock = Rs 4,80,000
Purchases = Rs 40,000 - Rs 16,000 (goods delivered on 5th July) = Rs 24,000
Closing Stock = Opening Stock + Purchases - Cost of Goods Sold

Cost of Goods Sold = Rs 4,80,000 + Rs 24,000 - Cost of Normal Sales

Sales = Rs 1,36,000 - Rs 32,000 (goods sent on approval) = Rs 1,04,000
Cost of Normal Sales = (Cost of Goods Sold - Rs 24,000) / 1.25

We need to subtract the cost of goods sent on consignment but not sold (Rs 24,000) from the cost of goods sold, as these goods are still with us and have not been sold. We also need to divide the cost of normal sales by 1.25 to account for the fact that goods are sold at cost plus 25%.

Let's substitute the values in the above formula:

Cost of Normal Sales = (Rs 4,80,000 + Rs 24,000 - Cost of Goods Sold - Rs 24,000) / 1.25
Cost of Normal Sales = (Rs 4,80,000 + Rs 24,000 - Rs 1,04,000 - Rs 24,000) / 1.25
Cost of Normal Sales = Rs 73,600

Therefore, the cost of normal sales is Rs 73,600.
Free Test
Community Answer
Physical verification of stock was done on 23rd june. the value of sto...
A
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. Can you explain this answer?
Question Description
Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. 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 Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. 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 Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. Can you explain this answer?.
Solutions for Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. Can you explain this answer? 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 Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following transactions took place between 23rd june and 30th june –1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th July.3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.You want to determine the value of stock on 30th June. You start with physical stock on 23rd June.Q.Cost of Normal Sales = _______.a)73,600b)80,000c)1,08,800d)99,200Correct answer is option 'A'. Can you explain this answer? 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