Opening inventory Rs 12,00,000 ,Purchases Rs 68,00,000 ,Sales Rs 96,00,000. The value of closing inventory as per physical stock was Rs 6,50,000. The company's gross profit on sales has remained constant at 25%. The management of the company suspects that some inventories might have been pilfered by a new employee . What is the estimated cost of missing inventory ?

Rs.1,50,000

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Rs.50,000

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Rs.2,00,000

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Rs.3,00,000

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Solution

The correct option is D Rs.1,50,000
Particular Amt Particular Amt
To Opening Inventory A/c 1200000 By Sales A/c 9600000
To Purchase A/c 6800000 By Missing Inventories A/c
(balancing figures) 150000
To Gross Profit A/c
9600000*25% 2400000 By Closing A/c 650000

The missing inventory value can be found out by deducting Dr. Column with Cr. Column.The balancing figure in the above table shows the value of missing inventory i.e. Rs.150000

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Similar questions

Q. From the following data, calculate Inventory Turnover Ratio:
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Q. The total cost of goods available for sales with a company during the current year is Rs.

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Particular	Amt	Particular	Amt
To Opening Inventory A/c	1200000	By Sales A/c	9600000
To Purchase A/c	6800000	By Missing Inventories A/c (balancing figures)	150000
To Gross Profit A/c 9600000*25%	2400000	By Closing A/c	650000