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A sent some goods costing Rs. 3,500 at a profit of 25% on sale or return basis. B returned goods amounting to Rs. 800 at Invoice value. At the end of the accounting period on March 31st 2009, the remaining goods were neither returned nor approved by B. The stock on approval will be shown in B/S as:
  • a)
    Rs. 2,900
  • b)
    Rs. 2,700
  • c)
    Rs. 2,025
  • d)
    Rs. 3,500
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A sent some goods costing Rs. 3,500 at a profit of 25% on sale or retu...
Calculation of Profit on Sale or Return Basis:

- Cost of goods sold = Rs. 3,500
- Profit on sale or return basis = 25%
- Selling price of goods = Cost of goods sold + Profit = Rs. 4,375

Calculation of Goods Returned by B:

- Amount of goods returned by B = Rs. 800
- Invoice value of goods returned by B = Cost price of goods returned = Rs. 800

Calculation of Remaining Goods:

- Selling price of all goods sent to B = Rs. 4,375
- Amount of goods returned by B = Rs. 800
- Amount of goods approved by B = 0
- Amount of remaining goods = Selling price of all goods sent - Amount of goods returned - Amount of goods approved = Rs. 3,575

Calculation of Stock on Approval:

- Stock on approval is the value of remaining goods that were neither returned nor approved by B.
- Stock on approval = Amount of remaining goods - Cost of goods on approval
- We know that the selling price of all goods sent to B was Rs. 4,375 and the cost of goods sold was Rs. 3,500.
- Therefore, the cost of goods on approval = Rs. 4,375 - Rs. 3,500 = Rs. 875
- Stock on approval = Amount of remaining goods - Cost of goods on approval = Rs. 3,575 - Rs. 875 = Rs. 2,700

Therefore, the correct answer is option 'A' Rs. 2,900.
Community Answer
A sent some goods costing Rs. 3,500 at a profit of 25% on sale or retu...
Invoice value of stock returned =800
actual value of stock returned =
Invoice value - profit
800 -25% of 800 = 600
Stock on approval =3500-600= 2900
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A sent some goods costing Rs. 3,500 at a profit of 25% on sale or return basis. B returned goods amounting to Rs. 800 at Invoice value. At the end of the accounting period on March 31st 2009, the remaining goods were neither returned nor approved by B. The stock on approval will be shown in B/S as:a)Rs. 2,900b)Rs. 2,700c)Rs. 2,025d)Rs. 3,500Correct answer is option 'A'. Can you explain this answer?
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A sent some goods costing Rs. 3,500 at a profit of 25% on sale or return basis. B returned goods amounting to Rs. 800 at Invoice value. At the end of the accounting period on March 31st 2009, the remaining goods were neither returned nor approved by B. The stock on approval will be shown in B/S as:a)Rs. 2,900b)Rs. 2,700c)Rs. 2,025d)Rs. 3,500Correct 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 A sent some goods costing Rs. 3,500 at a profit of 25% on sale or return basis. B returned goods amounting to Rs. 800 at Invoice value. At the end of the accounting period on March 31st 2009, the remaining goods were neither returned nor approved by B. The stock on approval will be shown in B/S as:a)Rs. 2,900b)Rs. 2,700c)Rs. 2,025d)Rs. 3,500Correct 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 A sent some goods costing Rs. 3,500 at a profit of 25% on sale or return basis. B returned goods amounting to Rs. 800 at Invoice value. At the end of the accounting period on March 31st 2009, the remaining goods were neither returned nor approved by B. The stock on approval will be shown in B/S as:a)Rs. 2,900b)Rs. 2,700c)Rs. 2,025d)Rs. 3,500Correct answer is option 'A'. Can you explain this answer?.
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