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Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]?
Most Upvoted Answer
Goods are transferred from dept. A to dept. B at selling price. Usuall...
First, we need to find the cost of goods transferred from dept. A to dept. B:
Cost of goods = Selling price / (1 + GP%)
GP% of dept. A = 20%
Selling price = Cost / (1 - GP%)
Selling price = Cost / 0.8
Therefore, Cost of goods transferred from dept. A to dept. B = Selling price of goods transferred / 0.8
Selling price of goods transferred = Closing stock of dept. B / 0.75
Selling price of goods transferred = Rs. 1,20,000
Cost of goods transferred from dept. A to dept. B = Rs. 1,20,000 / 0.8 = Rs. 1,50,000
Now, we need to calculate the value of closing stock of dept. B:
Closing stock of dept. B = Rs. 90,000
25% of closing stock = Rs. 22,500 (Other expenses)
Cost of goods in closing stock = Rs. 90,000 - Rs. 22,500 = Rs. 67,500
Profit included in closing stock of dept. B = Selling price of closing stock - Cost of closing stock
Profit included in closing stock of dept. B = Rs. 90,000 - Rs. 67,500 = Rs. 22,500
Now, we need to calculate the stock reserve on the opening stock of dept. B:
Stock reserve = Opening stock of dept. B * GP% of dept. A
Stock reserve = Rs. 40,000 * 20% = Rs. 8,000
However, as we need to calculate the stock reserve on cost, we need to adjust this value:
Stock reserve on opening stock = Stock reserve on selling price / 1.2
Stock reserve on opening stock = Rs. 8,000 / 1.2 = Rs. 6,000
Therefore, the profit included in the stocks of dept. B is Rs. 22,500 and the stock reserve on the opening stock of dept. B is Rs. 6,000.
Cost of goods = Selling price / (1 + GP%)
GP% of dept. A = 20%
Selling price = Cost / (1 - GP%)
Selling price = Cost / 0.8
Therefore, Cost of goods transferred from dept. A to dept. B = Selling price of goods transferred / 0.8
Selling price of goods transferred = Closing stock of dept. B / 0.75
Selling price of goods transferred = Rs. 1,20,000
Cost of goods transferred from dept. A to dept. B = Rs. 1,20,000 / 0.8 = Rs. 1,50,000
Now, we need to calculate the value of closing stock of dept. B:
Closing stock of dept. B = Rs. 90,000
25% of closing stock = Rs. 22,500 (Other expenses)
Cost of goods in closing stock = Rs. 90,000 - Rs. 22,500 = Rs. 67,500
Profit included in closing stock of dept. B = Selling price of closing stock - Cost of closing stock
Profit included in closing stock of dept. B = Rs. 90,000 - Rs. 67,500 = Rs. 22,500
Now, we need to calculate the stock reserve on the opening stock of dept. B:
Stock reserve = Opening stock of dept. B * GP% of dept. A
Stock reserve = Rs. 40,000 * 20% = Rs. 8,000
However, as we need to calculate the stock reserve on cost, we need to adjust this value:
Stock reserve on opening stock = Stock reserve on selling price / 1.2
Stock reserve on opening stock = Rs. 8,000 / 1.2 = Rs. 6,000
Therefore, the profit included in the stocks of dept. B is Rs. 22,500 and the stock reserve on the opening stock of dept. B is Rs. 6,000.
Community Answer
Goods are transferred from dept. A to dept. B at selling price. Usuall...
As per your question ,
Solution :- Given, rate of Gross profit is 20% on sales
Therefore, In B's closing stock consists 75% of A
i.e 90,000 × 75 % = 67,500 on which Dept. A earns a profit of 20% on sales
67500 × 20% = 13,500
2nd , In B's opening stock consists 75% of A
40,000 × 75% = 30,000 on which Dept. A earns a profit of 20% on sales
i.e 30,000 × 20% = 6,000
Thanks !
Solution :- Given, rate of Gross profit is 20% on sales
Therefore, In B's closing stock consists 75% of A
i.e 90,000 × 75 % = 67,500 on which Dept. A earns a profit of 20% on sales
67500 × 20% = 13,500
2nd , In B's opening stock consists 75% of A
40,000 × 75% = 30,000 on which Dept. A earns a profit of 20% on sales
i.e 30,000 × 20% = 6,000
Thanks !
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Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]?
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Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]?.
Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]?.
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Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]?, a detailed solution for Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]? has been provided alongside types of Goods are transferred from dept. A to dept. B at selling price. Usually stocks of dept. B consists of 75% of goods received from dept. A and balance 25% other expenses. From the following particulars compute the profit included in the stocks of dept.B G. P ratio of dept. A: 20%: on sales. Opening stock of dept. B: Rs. 40,000 Closing stock of dept. B: Rs. 90,000 [Answer: stock reserve: on opening stock: Rs. 6,000 & on closing stock: Rs. 13,500]? theory, EduRev gives you an
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