M/s Kedar, Profit and loss account showed a net profit of 8,00,000, after considering the closing stock of 7,50,000 on 31st March, 2017.…

M/s Kedar, Profit and loss account showed a net profit of 8,00,000, after considering the closing stock of 7,50,000 on 31st March, 2017. Subsequently the following information was obtained from scrutiny of the books: (i) Purchases for the year included - 30,000 paid for new electric fittings for the shop. (ii) M/s Kedar gave away goods valued at 80,000 as free samples for which no entry was made in the books of accounts. (iii) Invoices for goods amounting to 5,00,000 have been entered on 27th March, 2017, but the goods were not included in stock. (iv) In March, 2017 goods of 4,00,000 sold and delivered were taken in the sales for April, 2017. (v) Goods costing - 1,50,000 were sent on sale or return in March, 2017 at a margin of profit of 33-1/3% on cost. Though approval was given in April, 2017 these were taken as sales for March, 2017. You are required to determine the adjusted net profit for the year ended on 31.3.2017 and calculate the value of stock on 31st March, 2017.