Question

CAS Ltd. follows perpetual inventory system. On March 31 of every year, the company undertakes physical stock verification. On March 31, the value of stock as per the records differed from the value as per the physical stock. On scrutiny, the following differences were noticed: Goods purchased for Rs.20,000 were received and included in the physical stock but no entry was made in the books. Goods costing Rs.60,000 were sold and entered in the books but the stock is yet to be delivered. Goods worth Rs.10,000 are returned to the suppliers but is omitted to be recorded. If the inventory is valued in the books at Rs.3,00,000, the value of the physical inventory is ________________.

• A. Rs.2,22,000
• B. Rs.3,78,000
• C. Rs.3,70,000
• D. Rs.3,18,000

Answer 1

Answer: (C)

Rs.3,70,000

Value of inventory as per books = 3,00,000

Add:- Goods purchased but omitted to be recorded = 20,000

Goods sold not yet delivered = 60,000

Less:- Goods returned to supplies not accounted in books = (10,000)

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Value of physical inventory = 3,70,000