From the following particulars ascertain the value of inventories as on 31st March, 2024 : Inventory as on 1st April, 20233,50,000 Purchase made…

CA Foundation · Accounting · RTP · September 2024
From the following particulars ascertain the value of inventories as on 31st March, 2024 : Inventory as on 1st April, 20233,50,000 Purchase made during the year 12,00,000 Sales - 18,50,000 Manufacturing Expenses - 1,00,000 Selling and Distribution Expenses - 50,000 Administration Expenses - 80,000 At the time of valuing inventory as on 31st March, 2023, a sum of 20,000 was written off on a particular item which was originally purchased for 55,000 and was sold during the year for 50,000. Except the above mentioned transaction, gross profit earned during the year was 20% on sales.

Suggested Answer and Working Notes:

Statement of Inventory in trade as on 31st March, 2024 Particulars ₹ Inventory as on 31st March, 2023 3,50,000 Less: Book value of abnormal inventory (₹ 55,000 -20,000) 35,000 3,15,000 Add: Purchases 12,00,000 Manufacturing Expenses 1,00,000 16,15,000 Less: Cost of goods sold: Sales as per books 18,50,000 Less: Sales of abnormal item 50,000 18,00,000 Less: Gross Profit @20% 3,60,000 14,40,000 Inventory in trade as on 31st March, 2024 1,75,000

Topics: Inventories

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