Accounts – Inventory

Q.1. The following are the details of a spare part of Sriram Mills:
1-1-2018 Opening Stock Nil
1-1-2018 Purchases 100 units @ ` 30 per unit
15-1-2018 Issued for consumption 50 units
1-2-2018 Purchases 200 units @ ` 40 per unit
15-2-2018 Issued for consumption 100 units
20-2-2018 Issued for consumption 100 units
1-3-2018 Purchases 150 units @ ` 50 per unit
15-3-2018 Issued for consumption 100 units

Find out the value of stock as on 31-3-2018 if the company follows:-

1. First in first Out basis
2. Last in First Out basis.
3. Weighted Average basis.

Solution:
Sriram Mills Calculation of the value of stock as on 31-03-2018
1. First-in-First out basis:
Date Receipts Issues Balance
Units Rate ` Units Rate ` Units Rate `
` ` ` ` ` `
1-1-2018 Balance Nil
1-1-2018 100 30 3,000 - - - - 100 30 3,000
15-1-2018 - - - 50 30 1,500 50 30 1,500
1-2-2018 200 40 8,000 - - - - 50 30 1,500
- - - - - - - 200 40 8,000
15-2-2018 - - - 100 50 30 1,500 150 40 6,000
- - - 50 40 2,000
20-2-2018 - - - 100 40 4,000 50 40 2,000
1-3-2018 150 50 7,500 - - - - 50 40 2,000
- - - - - - - 150 50 7,500
15-3-2018 - - - 100 50 40 2,000 100 50 5,000
- - - - 50 50 2,500 - - -
Therefore, the value of stock as on 31-3-2018: 100 units @ ` 50 = ` 5,000.

Siram Mills Calculation of the value of stock as on 31-03-19 2018

2. Last in First out basis:
Date Receipts Issues Balance
Units Rate ` Units Rate ` Units Rate `
` ` ` ` ` `
1-1-2018 Balance Nil
1-1-2018 100 30 3,000 - - - - 100 30 3,000
15-1-2018 - - - 50 30 1,500 50 30 1,500
1-2-2018 200 40 8,000 - - - - 50 30 1,500
- - - - - - - 200 40 8,000
15-2-2018 - - - 100 40 4,000 50 30 1,500
- - - - 100 40 4,000
20-2-2018 - - - 100 40 4,000 50 30 1,500

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 1-3-2018 150 50 7,500 - - - - 50 30 1,500
- - - - - - - 150 50 7,500
15-3-2018 - - - 100 - 50 5,000 50 30 1,500
- - - - - 50 50 2,500
Therefore, the value of stock as on 31-3-2018:
50 units @ ` 30 = ` 1,500
50 units @ ` 50 = ` 2,500
` 4,000

Siram Mills Calculation of the value of stock as on 31-03-2018

3. Weighted Average basis:
Date Receipts Issues Balance
Units Rate ` Units Rate ` Units Rate `
` ` ` ` ` `
1-1-2018 Balance Nil
1-1-2018 100 30 3,000 - - - 100 30 3,000
15-1-2018 - - - 50 30 1,500 50 30 1,500
1-2-2018 - - - - - - 50 30 1,500
200 40 8,000 - - - 250 38 9,500
15-2-2018 - - - 100 38 3,800 150 38 5,700
20-2-2018 - - - 100 38 3,800 50 38 1,900
1-3-2018 150 50 7,500 - - - 200 47 9,400
15-3-2018 - - - 100 47 4,700 100 47 4,700
Therefore, the value stock as on 31-3-2018: = 100 units @ ` 47 = ` 4,700

Q.2. Shri Thangavel sells goods at 20% GP on Cost. He provides the following data. Find out the
value of Closing Inventory
 Opening Inventory at Market Prices = ` 1,20,000 (Cost = ?)
 Sales made during the period = * ` 38,40,000
 Purchases during the period (at Cost) = ` 34,00,000.

Solution:
 Since GP = 20% on Cost = 1/5 on Cost, it is equal to 1/6th on Selling Price.
 So, Cost of Sales = Sales less GP at 1/6h thereon = ` 38,40,000 – 1/6th = ` 32,00,000.
 Similarly, Cost of Opening Inventory = ` 1,20,000 less GP at 1/6th thereon = ` 1,00,000.
 Also, Cost of Sales = Opening Inventory + Purchases - Closing Inventory.
 From this equation, we get Closing Inventory = Opening Inventory + Purchases - Cost of
Sales.
 So, Closing Inventory = 1,00,000 + 34,00,000 – 32,00,000 = ` 3,00,000.

Q.3. Shri Singaravelan commenced retail business during the year, and provides the following data
for the year -
 Sales during the year = ` 85,00,000
 Closing Inventory at Market Prices = ` 13,50,000
 Purchases during the period = ` 78,80,000.
Find out the value of Closing Inventory.
Solution:
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 Sales during the year 85,00,000
Add: Closing Inventory at Market Prices 13,50,000
Total of above 98,50,000
Less: Cost of Purchase during the year 78,80,000
Gross Profit 19,70,000
Gross Profit Margin as a % of Sales = 19,70,000 ÷ 98,50,000 20 %
So, Value of Closing Inventory = Market Price Less 20% GP 13,50,000 – 20% =
10,80,000

Q.4. Shri Swaminathan operates a retail business. For a financial year, the following data is given –
Particulars At Retail Price At Cost
Value of Opening Inventory ` 80,000 ` 60,000
Value of Purchases ` 1,40,000 ` 1,20,000
Calculate the cost of closing Stocks, if the Sales made during the period is ` 2,00,000.

Solution:
1. Value of Closing Inventory = Opening Stock + Purchases – Sales
at Retail Prices = ` 80,000 + ` 1,40,000 - ` 2,00,000 = ` 20,000.
2. Average Percentage of Cost = Total Average Cost ÷ Total Average Retail Value
to Retail Prices = (` 60,000 + ` 1,20,000) ÷ (` 80,000 + ` 1,40,000)
= 81.82%. So, GP Margin = 100% - 81.82% = 18.18%.
3. Value of Closing Inventory = Retail Value Less Margin of 18.18%
at Cost Prices = ` 20,000 – 18.18% thereon = ` 16,364.

Q.5. M/s X, Y and Z are in retail business, following information are obtained from their records for
the year ended 31st March, 2016:
Goods received from suppliers
(subject to trade discount and taxes) ` 15,75,500
Trade discount 3% and sales tax 11%
Packaging and transportation charges ` 87,500
Sales during the year ` 22,45,500
Sales price of closing inventories ` 2,35,000
Find out the historical cost of inventories using adjusted selling price method.

Solution:
Determination of cost of purchases:
Goods received from suppliers ` 15,75,500
Less: Trade discount 3% ` (47,265)
15,28,235
Add: Sales Tax 11% ` 1,68,106
` 16,96,341
Add: Packaging and transportation charges ` 87,500
` (17,83,841)

Determination of estimated gross profit margin:

Sales during the year ` 22,45,500
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 Closing inventory at the selling price ` 2,35,000
24,80,500
Less: Purchases (`17,83,841)
Gross profit ` 6,96,659
Gross profit margin 28.09%
Inventory valuation:
Selling price of closing inventories ` 2,35,000
Less: Gross profit margin 28.09% (` 66,012)
` 1,68,988

Q.6. From the following information, calculate the historical cost of inventories using adjusted
selling price method:
Sales during the year 2,00,000
Cost of purchases 2,00,000
Opening inventory Nil
Closing inventory at selling price 50,000

Solution:
Calculation of gross margin of profit:
`
Sales 2,00,000
Add: Closing inventory (at selling price) 50,000
Selling price of goods available for sale: 2,50,000
Less: Cost of goods available for sale 2,00,000
Gross margin 50,000
50,000
Rate of gross margin = 2,50,000 × 100 = 20%
Cost of closing inventory = 50,000 less 20% of ` 50,000 = ` 40,000

Q.7. A trader prepared his accounts on 31st March, each year. Due to some unavoidable reasons,
stock taking was done on 15th March, 2006 on which date the total cost of goods in his
godown came ` 50,000. The following facts were established between 15th March and 31st
March, 2006.
(a) Sales 41,000 (including cash sales ` 10,000)
(b) Purchases 5,034 (including cash purchases ` 1,990)
(c) Sales Returns ` 1,000
Goods are sold by the trader at a profit of 20% on sales.
You are required to ascertain the value of stock on hand on 31st March, 2006.

Solution:
Statement showing the Valuation of Stock as on 31st March, 2006
A Stock in godown (Physic inventory) as on 15-3-06 50,000
B Less: (a) Cost of sales between 15.3 to 313. net of return
80% of (` 41,000 - ` 1,000) -32,000
+ 5,034
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 C Add: (a) Purchases during the period 23,034
D Stock as on March 31, 2006 (at cost)

Q.8. X who was closing his books on 31-3-2006 failed to take the actual Stock which he did only on
9th April, 2006, when it was ascertained by him to be worth ` 25,000.
It was found that sales are entered in the sales book on the same day of dispatch and return
inwards in the return book as and when the goods are received back. Purchases are entered in
the purchases day book once the invoices are received.
It was found that sales between 31-3-2006 and 9-4-2006 as per the sales day book are ` 1,720.
Purchases between 31-3-2006 and 9-4-2006 as per purchases day book are ` 120, out of these
goods amounting to ` 50 were not received until after the stock was taken.
Goods invoiced during the month of March, 2006 but goods received only on 4th April, 2006
amounted to ` 100. Rate of gross profit is 33 1/3% on cost.
Ascertain the value of physical stock as on 31-3-2006.

Solution:
Stock on 9-4-2006 25,000
Add: Cost of goods sold (1720/100) x 75 + 1,290
Note: Profit 33 1/3% on cost = 25% on sale
Less: Goods purchased and received (120-50) -70
Less: Goods purchased in March but received on 4-4-06 - 100
Physical stock on 31-3-06 26120
Add: Stock in transit (purchased but not received till 31-3-06) + 100
Closing stock for final a/c 26,220

Q.9. Aruna Ltd provides the following information. Find the Value of Inventory for Balance Sheet
purposes.
Value of Stocks as per Physical Verification on 31st March = ` 28,00,000. The following items
are to be considered.
 Goods held by Sub-Contractors and Job Workers of Aruna Ltd, for which Confirmation
Certificates have been received = ` 8,30,000
 Goods sold to Harini Ltd, a customer, who has requested for dispatch only on 7th April,
included in above physical stock = ` 10,00,000.
 Goods held by Aruna Ltd on behalf of Padmini Ltd (Consignor) = ` 2,50,000
 Goods sold on approval to Sankari Ltd ` 7,00,000 for which confirmation not yet received
in respect of ` 2,00,000.
 Goods purchased under Firm Contracts, still in transit at year-end = ` 3,50,000.

Solution:
Value of Physical Stocks on 31st March ` 28,00,000
Add Goods in Transit ` 3,50,000
Add Goods held by Other Entities (e.g. Stock held by Sub-Contractor, Job ` 8,30,000
Add Workers)
Goods sent on approval & confirmation not received from Customer ` 2,00,000
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 Sankari Ltd
Less Goods sold but delivery pending at Buyer’s request (Harini Ltd) ` 10,00,000
Less Goods held by us on behalf of Other Entities (e.g. in our capacity as ` 2,50,000
Consignee Agent)
Value of Stocks as per Balance Sheet ` 29,30,000

Q.10. M/s Polypack and Company's financial year ends on 31st March, 2018. Their actual physical
stock as on 31st March was ` 6,25,000 (net realizable value ` 6,40,000).
Following information regarding stock are also available:
(i) Goods costing ` 40,000 were damaged badly and it was expected that only ` 5,000 could
be realized.
(ii) Goods costing ` 25,000 were sold on sale or return basis for which no confirmation has
been received till 31st March, 2018. Invoice value of these goods was ` 30,000.
(iii) Goods were sent on consignment to Mr. B at invoice value (120% of cost) ` 1,50,000 on
31st March 2018. He informed that half of the material remains unsold.
You are required to ascertain the value of closing stock as on 31st March, 2018 as per AS 2.

Solution:
Statement of Valuation of Physical Stock
as on 31st March, 2018
(`)
st
Stock as on 31 March, 2018 6,25,000
Add: (a) Goods on sale or return basis 25,000
(b) Goods unsold with consignee
1,50,000 62,500 87,500
x 50%
120%
7,12,500
Less: Reduction in value of stock due to badly damaged goods: `
(40,000 – 5,000) 35,000
Value of Closing Stock
6,77,500

Q.11. A trader prepared his accounts on 31st March, each year. Due to some unavoidable reasons, no
stock taking could be possible till 15th April, 2018 on which date the total cost of goods in his
godown came to ` 50,000. The following facts were established between 31st March and 15th
April, 2018.
(i) Sales ` 41,000 (including cash Sales ` 10,000)
(ii) Purchases ` 5,034 (including cash purchases ` 1,990)
(iii) Sales Return ` 1,000.
(iv) On 15th March, goods of the sale value of ` 10,000 were sent on sale or return basis to a
customer, the period of approval being four weeks. He returned 40% of the goods on 10th
April, approving the rest; the customer was billed on 16th April.
(v) The trader had also received goods costing ` 8,000 in March, for sale on consignment
basis; 20% of the goods had been sold by 31st March, and another 50% by the 15th April.
These sales are not included in above sales.
Goods are sold by the trader at a profit of 20% on sales.
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 You are required to ascertain the value of Inventory as on 31st March, 2018.

Solution:
Statement of Valuation of Stock on 31st March, 2018.
` `
Value of stock as on 15th April, 2018 50,000
st th
Add: Cost of sales during the period from 31 March, 2018 to 15
April, 2018 40,000
Sales (` 41,000 - ` 1,000) 8,000 32,000
Less: Gross Profit (20% of ` 40,000)
Cost of goods sent on approval basis (80% of ` 6,000) 4,800
86,800
Less: Purchases during the peri of from 31st March, 2018 to 15th April, 5,034
2018
Unsold stock out of goods received on consignment basis (30% 2,400 7,434
of ` 8,000)
79,366

Q.12. Inventory taking for the year ended 31st March, 2016 was completed by 10th April 2016, the
valuation of which showed a inventory figure of ` 16,75,000 at cost as on the completion date.
After the end of the accounting year and till the date of completion of inventory taking, sales
for the next year were made for ` 68,750, profit margin being 33.33 percent on cost. Purchases
for the next year included in the inventory amounted to ` 90,000 at cost less trade discount 10
percent. During this period, goods were added to inventory at the mark up price of ` 3,000 in
respect of sales returns. After inventory taking it was found that there were certain very old
slow moving items costing ` 11,250, which should be taken at ` 5,250 to ensure disposal to an
interested customer. Due to heavy flood, certain goods costing ` 15,500 were received from the
supplier beyond the delivery date of customer. As a result, the customer refused to take
delivery and net realizable value of the goods was estimated to be ` 12,500 on 31st March.
Compute the value of inventory for inclusion in the final accounts for the year ended 30th
March, 2016.

Solution:
Statement showing the valuation of Inventory as on 31st March, 2016
Value of Inventory as on 10th April 16,75,000
Add: Cost of goods sold after 31st March till Inventory taking ( ` 68,750 - ` 51,560
17,190)
Less: Purchases for the next period (net) (81,000)
Less: Cost of Sales Returns (2,250)
Less: Loss on revaluation of slow moving inventories (6,000)
Less: Reduction in value on account of default (3,000)
Value of Inventory on March 31 16,34,310
Note: Profit margin of 33.33 percent on cost means 25 percent on sales price.

Q.13. X who was closing his books on 31.3.2016 failed to take the actual stock which he did only on
9th April, 2016, when it was ascertained by him to be worth ` 2,50,000.

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 It was found that sales are entered in the sales book on the same day of dispatch and return
inwards in the returns book as and when the goods are received back. Purchases are entered in
the purchases day book once the invoices are received.
It was found that sales between 31.3.2016 and 9.4.2016 as per the sales day book are ` 17,200.
Purchases between 31.3.2016 and 9.4.2016 as per purchases day book are ` 1,200, out of these
goods amounting to ` 500 were not received until after the stock was taken.
Goods invoiced during the month of March, 2016 but goods received only on 4th April, 2016
amounted to ` 1,000. Rate of gross profit is 33-1/3% on cost.
Ascertain the value of physical stock as on 31.3.2016.

Solution:
Statement of Valuation of Physical Stock as on 31st March, 2016
`
Value of stock as on 9th April, 2016 2,50,000
Add: Cost of sales during the intervening period
Sales made between 31.32016 and 9.4.2016 17,200
Less: Gross profit @25% on sales (4,300) 12,900
2,62,900
Less: Purchases actually received during the intervening period:
Purchases from 1.4.2016 to 9.4.2016 1,200
Less: Goods not received upto 9.4.2016 (500) 700
2,62,200
Less: Purchases during March, 2016 received on 4.4.2016 1,000
Value of physical stock as on 31.3.2016 2,61,200

Q.14. Physical verification of stock in a business was done on 23rd June, 2016. The value of the
stock was ` 48,00,000. The following transactions took place between 23rd June to 30th June,
2016:
(i) Out of the goods sent on consignment, goods at cost worth ` 2,40,000 were unsold.
(ii) Purchases of ` 4,00,000 were made out of which goods worth ` 1,60,000 were delivered
on 5th July, 2016.
(iii) Sales were ` 13,60,000, which include goods worth ` 3,20,000 sent on approval. Half of
these goods were returned before 30th June, 2016, but no information is available
regarding the remaining goods.
(iv) Goods are sold at cost plus 25%. However goods costing ` 2,40,000 had been sold for `
1,20,000.
Determine the value of stock on 30th June, 2016

Solution:
Statement of Valuation of Stock on 30th June, 2016
`
Value of stock as on 23rd June, 2016 48,00,000
Add: Unsold stock out of the goods sent on consignment 2,40,000
Purchases during the period from 23rd June, 2016 to 30th June, 2,40,000
2016
Goods in transit on 30th June, 2016 1,60,000

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 Cost of goods sent on approval basis (80% of ` 1,60,000) 1,28,000 7,68,000
55,68,000
Less: Cost of sales during the period from 23rd June, 2016 to 30th
June, 2016
Sales (` 13,60,000 - ` 1,60,000) 12,00,000
Less: Gross profit 96,000
11,04,000
Value of stock as on 30th June, 2016 2,61,200

Working Notes:
1. Calculation of normal sales:
Actual sales 13,60,000
Less: Abnormal sales 1,20,000
Return of goods sent on approval 1,60,000 2,80,000
10,80,000

2. Calculation of gross profit:

Gross profit or normal sales 20/100 x ` 10,80,000 2,16,000
Less: Loss on sale of particular (abnormal) goods (` 2,40,000-` 1,20,000
1,20,000)

Gross profit 96,000

Q.15. From the following particulars for the years 2004 and 2005 determine the value of the closing
stock at the end of 2005.
2004 ` 2005 `
Opening Stock 20,000 30,000
Purchases 1,20,000 1,90,000
Sales 2,00,000 2,40,000

Uniform rate of gross profit may be assumed.

At the end of 2005, goods purchased were received, but no entry was made for this credit
purchase since invoice was not received. These goods cost 20,000

Solution:
Closing stock of 2005 can be ascertained by preparing Trading a/c but gross profit ratio for
2005 is not given hence the same is ascertained by preparing Trading a/c of 2004. For this
remember the closing stock of this year is the opening stock of next year.

Trading A/c
For the year ending 31st December, 2004
Particulars ` Particulars `
To Opening Stock 20,000 By Sales 2,00,000
To Purchases 1,20,000 By Closing Stock 30,000
To Gross Profit (Balancing figure) 90,000
2,30,000 2,30,000

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 Calculation of Rate of Gross Profit
Gross Profit 90,000
Gross Profit Ratio = x 100 = 2,00,000 x 100 = 45%
Sales

Trading A/c
For the year ending 31st December, 2005
Particulars ` Particulars `
To Opening Stock 30,000 By Sales 2,40,000
To Purchases 1,90,000 By Closing Stock 1,08,000
+ unrecorded purchase 20,000 2,10,000 (Balancing Figure)
To Gross Profit (45% of 2,40,000) 1,08,000
3,48,000 3,48,000
Uniform Rate of gross Profit = 45% is taken from 2004. Stock as on 31-12-2005 including
goods for which invoice was not accounted is ` 1,08,000.

Q.16. From the following particulars ascertain the value of stock as on 31st March, 2006 and also the
profit for the year. Stock as on 1-4-2005 ` 14,250, Purchases ` 76,250; Manufacturing
Expenses ` 15,000, Selling Expenses ` 6050, Administrative Expenses ` 3,000; Financial
Charges 2,150; Sales ` 1,24 500
At the time of valuing stock as on 31st March, 2005 a sum of ` 1,750 was written off on a
particular item, which was originally purchased for ` 5,000 and was sold during the year for
` 4,500. Barring the transaction relating to this item, the gross profit earned during the year was
20 per cent on sales.

Solution:
To apply the given normal G.P. ratio of 20%, abnormal item is excluded from opening stock as
well as sales
Trading A/c
Particulars ` Particulars `
Opening Stock Sales 1,24,500
(-) Abnormal item 14250 (-) Abnormal item sale 4500 1,20,000
3250 11,000 Closing Stock (Balancing 6,250
Purchases 76,250 Figure)
Manufacturing Exp. 15,000
Gross profit (20% on 1,20,000) 24,000
1,26,250 1,26,250

Profit & Loss A/c

Particulars ` Particulars `
Selling exp. 6,050 Gross profit 24,000
Administrative exp. 3,000 Profit on abnormal item
Financial charges 2,150 Sale value 4500
Net profit (Balancing figure) 14,050 Less Written down cost -3250 1,250
25,250 25,250

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Q.17. Mr. James submits you the following information for the year ended 31.3.2013:
`
Stock as on 1.4.2012 1,50,000
Purchases 4,37,000
Manufacturing Expenses 85,000
Sales 6,25,000

During the year damaged goods costing ` 12,000 were sold for ` 5,000. Barring the above
transaction the Gross Profit has been @20% on sales.
Compute the Closing Stock as on 31.3.2013.

Solution:
Closing Stock ` 1,64,000

Q.18. From the following information, ascertain the value of stock as on 31.3.2013:
`
Value of Stock on 1.4.2012 70,000
Purchases during the period from 1.4.2012 to 31.3.2013 3,46,000
Manufacturing expenses during the above period 70,000
Sales during the same period 5,22,000
At the time of valuing stock on 31.3.2012, a sum of ` 6,000 was written off a particular item
which was originally purchased for ` 20,000 and was sold for ` 16,000. But for the above
transaction the gross profit earned during the year was 25% on cost.

Solution:
Closing Stock ` 67,200

Q.19. A firm has two products A and B. It analyses its costs for the products as follows:

Materials 1,20,000 1,40,000

Labour 80,000 1,00,000
Production Expenses 70,000 70,000
Administration Expenses 50,000 50,000
Advertising 30,000 30,000
3,50,000 3,90,000

Production was 20,000 units of A and 30,000 units of B. The selling price was ` 20 per unit of
A but the price of B was only ` 10; agents in both cases received commission @ 5% of the
selling price. The closing stock was 2,000 units and 3,000 units of A and B respectively. What
is the value that should be put on the closing stock?

Solution:
Statement Showing Valuation of Stock as on......
Cost of Production
A B
Materials `
1,20,000 1,40,000
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 Labour 80,000 1,00,000
Production Expenses 70,000 70,000
Total (i) 2,70,000 3,10,000
No. of units produced (ii) 20,000 30,000
Cost per unit [(-(ii)] ` 13.50 10.33
Net Realisable value (NRV)
(Selling price less 5% selling comm.)
Valued at Lower of Cost or NRV ` 19.00 9.50
No. of units in Stock ` 13.50 9.50
Value of Stock (at cost or net realisable value whichever is lower) 2,000 3,000
Total Value: 55,500 ` 27,000 28,500

Q.20. Raj Ltd. prepared their accounts for financial year ended on 31st March 2019. Due to
unavoidable circumstances actual stock has been taken on 10th April 2019, when it was
ascertained at ` 1,25,000. It has been found that;
(i) Sales are entered in the Sales Book on the day of dispatch and return Inward Book on the
day of the goods received back.
(ii) Purchases are entered in the Purchase Book on the day the Invoices are received.
(iii) Sales between 1st April 2019 to 9th April 2019 amounting to ` 20,000 as per Sales Day
Book.
(iv) Free samples for business promotion issued during 1st April 2019 to 9th April 2019
amounting to ` 4,000 at cost.
(v) Purchases during 1st April 2019 to 9th April 2019 amounting to ` 10,000 but goods
amounts to ` 2,000 not received till the date of stock taking.
(vi) Invoices for goods purchased amounting to ` 20,000 were entered on 28th March 2019 but
the goods were not included in stock.
Rate of Gross Profit is 25% on cost.
Ascertain the value of Stock as on 31st March 2019.

Solution:
Stock as on 10th April, 2019 1,25,000
20,000 16,000
Add: Cost of Goods sold 100 x 80
[Note:- Profit 25% on cost = 20% on sale]
Add: Free samples distributed
4,000
Less: Goods purchased & received (10,000 – 2,000)
8,000
Add: Invoice entered but goods not included in stock
20,000
Stock as on 31st March, 2019 1,57,000

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