You visited us 21 times! Enjoying our articles? Unlock Full Access!

Brokerage & GST

A firm closes...

Question

A firm closes their financial books on 31st March. Stock-taking could be completed after two weeks i.e., 15th April, the value arrived was Rs. $25, 000$ . During the two week purchases were RS. $1, 000$ and sales were of Rs. $4, 000$ . GP Ratio of the firm is $30$ %. Ascertain the value of closing stock as on 31st March.

Rs.

26, 800

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs.

25, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs.

27, 200

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs.

20, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Rs. $26, 800$
Stock valued on 15th April: Rs.25000
Less: Purchases done during two weeks Rs. 1000
-----------------
Rs.24000
Add: Cost of goods sold
Sales Rs.4000
Less: Gross Profit @30% Rs. 1200
-------------- Rs. 2800
------------------
Inventory Values as on 31st March Rs.26800
------------------

Suggest Corrections

Similar questions

In 2012 the value of the closing stock was Rs. 1,05,000 without making adjustments for the following:

(1) Purchases made during the two weeks after 31st March, 2012 were Rs. 5,000.

(2) Sales made during these two weeks amounted to Rs. 30,000. The firm makes a gross profit of 33 1/3% on sales. Find out the value of the closing stock on 31st March, 2012.

Q. X who was closing his book 31st march failed to take the actual stock which he did on 9th April, when it was ascertained by him to be worth Rs.50,000
It was found that sales are entered in the Sales Day Book on the same day of dispatch and the returns inward in the return book as and when goods are received back . Purchases are entered in the Purchase Day Book once the invoices are received .Observations-
(i) Sales between 31st March and 9th April as Sales Book are Rs.1,720.Rate of gross profit is 1/3rd on cost.
(ii) Purchases during the same period as per Purchases Book are Rs.120.
(iii) Out of above purchases , goods amounting to Rs.50 were not received until after the stock was taken.
(iv) Goods invoiced during the month of March , but goods received only on 4th April , amounted to Rs.100.
The Value of physical stock on 31st March is ________________.

Q. The balance in books of X, a sole proprietor were:
Opening Stock Rs.

17, 000

, Purchases Rs.

52, 000

Wages Rs.

46, 500

Fuel Rs.

15, 000

Sales Rs.

1, 45, 000

and Closing stock Rs.

25, 000

whose Net Realizable value was Rs.

28, 000

. Find the Gross profit.

PRACTICAL PROBLEMS

Ganesh and Chandan were partners sharing profits and losses in the proportion of 3:2. They dissolve the partnership firm on 31^st March, 2011 when their position was as follows:

Balance Sheet as on 31^st March, 2011
Liabilities	Amount Rs	Assets		Amount Rs
Sundry Creditors	25,000	Debtors	1,12,500
Bank overdraft	20,000	Less: R.D.D.	12,500	1,00,000
Reserve Fund	30,000	Stock		2,25,000
Capital Accounts:		Furniture		50,000
Ganesh	2,30,000	Motor Car		75,000
Chandan	1,50,000	Cash in hand		5,000
	4,55,000			4,55,000

The Assets realised as follows: Debtors Rs 90,000, Stock Rs 2,00,000, and Goodwill Rs 25,000, Motor Car was taken over by Ganesh for Rs 70,000 and Furniture by Chandan for Rs 60,000.
The Creditors were paid Rs 22,500 in full settlement. The expenses of realisation amounted to Rs 10,000.

Pass necessary journal entries in the books of the firm.

PRACTICAL PROBLEMS

Mahesh, Suresh and Jayesh were partners of the firm. They decided to dissolve the firm on 31^st March, 2012. Their Balance Sheet as on that date was as under:

Balance Sheet as on 31^st March, 2012
Liabilities	Amount Rs	Assets		Amount Rs
Creditors	18,000	Cash at Bank		9,600
Loan	4,500	Sundry Assets		51,000
Capitals		Debtors	72,600
Mahesh	82,500	Less: R.D.D.	3,600	69,000
Suresh	30,000	Stock		23,400
Jayesh	21,000	Furniture		3,000
	1,56,000			1,56,000

The firm was dissolved as follows:

1) Mahesh will accept furniture for Rs 2,000 and agreed accept the debtors of book value of Rs 60,000 at on agreed value of Rs 51,000.

2) Suresh will accept stock at an agreed value Rs 20,000, and Sundry Assets of Book value Rs 24,000 at Rs 23,500.

3) Jayesh will accept remaining Sundry Assets for Rs 25,000 He will further accept the liability of loan along with due interest at 12% p.a.

Interest for three months on this loan was outstanding and was not recorded in the books.

4) Expenses of dissolution were Rs 1,000 and outstanding expenses of Rs 1,200 were to be paid from the firm.

5) The remaining debtors were realised Rs 7,000.

Prepare:

1) Realisation A/c

2) Partner’s Capital A/c

3) Bank A/c

Join BYJU'S Learning Program