The Profit and Loss Account of Prabhat showed a net profit of 15,00,000, after considering the closing inventory of 9,37,500 on 31st March, 2026. On…

The Profit and Loss Account of Prabhat showed a net profit of 15,00,000, after considering the closing inventory of 9,37,500 on 31st March, 2026. On scrutiny of the books it was observed as under: (1) Purchases for the year included - 37,500 paid for new electrical fittings for the godown. (2) Goods valued at 1,00,000 were given away as free samples for which no entry had been passed in the books of account. (3) Invoices for goods amounting to 6,25,000 had been entered on 27th March, 2026, but the goods were not included in stock (4) In March, 2026 goods of 5,00,000 sold and delivered, were taken in the sales for April, 2026 (5) Goods costing - 1,87,500 were sent on sale or return basis in March, 2026 at a margin of profit of 33.33% on cost. Though approval was given in April, 2026, these were recorded in the sales for March, 2026. You are required to ascertain the value of Inventory on 31st March, 2026 and the adjusted net profit for the year ended on that date.