Question

A company sent their cars to dealers on sale or return basis. All such transactions are however treated like actual sales and are passed through a sales day book. Just before the end of the financial year two cars which costs Rs 50000 each have been sent on 'sale return' and have been debited to customers at Rs 60000 each, cost of goods lying with the customers will be _______________.

• A. Rs 100000
• B. Rs 120000
• C. Rs 60000
• D. None of these

Answer 1

Answer: (A)

Rs 100000

Cost of cars is Rs 50000 each so the cost of goods lying with the customers will be 100000.