Practice Test

the inventory of finished goods is valued at

CAS Ltd. follows perpetual Inventory system. On March 31 of every year , the company undertakes physical stock verification .On March 31,2007,the value of stock as per the records differed from the value as per the physical stock. On scrutiny , the following differences were noticed : Goods purchased for Rs.20,000 were received and included in the physical stock but no entry was made in the books . Goods costing Rs.60,000 were sold and entered in the books but the stock is yet to be delivered. Goods worth Rs.10,000 are Returned to the suppliers but is omitted to be recorded. If the inventory is valued in the books at Rs.3,00,000,the value of the physical inventory is

The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 27th ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He returned 20% of the goods & approval 80% of the remaining on 31st March The cost of inventory as per books is