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 A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:

  • a) 
    Rs. 45,000
  • b) 
    Rs. 50,000
  • c) 
    Rs. 53,750 
  • d) 
    Rs. 54,000
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A trader sends out goods is customer on approval and credits them to s...
Calculation of the amount of stock appearing in the balance sheet:

1) Calculation of cost of goods sent on approval basis:
Cost of goods = 25% of sales amount
Sales amount = Rs. 5,000
Cost of goods = 25/100 * 5,000 = Rs. 1,250

2) Calculation of total debtors:
Total debtors = Sundry debtors - Goods sent on approval basis
Total debtors = Rs. 5,000 - Rs. 1,250 = Rs. 3,750

3) Calculation of stock appearing in the balance sheet:
Stock appearing in the balance sheet = Physical stock - Cost of goods sent on approval basis + Debtors for goods sent on approval basis
Stock appearing in the balance sheet = Rs. 50,000 - Rs. 1,250 + Rs. 3,750 = Rs. 54,000

Therefore, the amount of stock appearing in the balance sheet would be Rs. 54,000.
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Community Answer
A trader sends out goods is customer on approval and credits them to s...
So basically we know that stock of 50,000 will be included in the closing stock and the stock included in debtors at sales price will also we included as confirmation is not recd yet so cost price of stock sold to debtor would be 4000
50000+4000=54000
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A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. Can you explain this answer?
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A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. 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 trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. 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 trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. Can you explain this answer?.
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Here you can find the meaning of A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors includes an amount of Rs. 5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost 25%. Physical stock taken on 31st March, 2011 amounted to Rs. 50,000. The amount of stock appearing is Balance Sheet would be:a)Rs. 45,000b)Rs. 50,000c)Rs. 53,750d)Rs. 54,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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