1- stock with customers at HPP (opening) Rs 162000
2- stock in hand at shop (opening) Rs.324000
3- Instalments overdue(opening) Rs.135000
4- purchases during the year Rs 1080000
5- Goods repossesed(instalment not due Rs. 36000) Rs. 9000
6- stock at shop excluding goods repossesed (closing) RS 360000
7- cash recieved during the year Rs 1035000
8- Instalments overdue(closing) Rs162000
Vendor spent Rs2000 on goods repossesed and then sold it for Rs15000. Calculate Profit/loss on repossession and profit/loss on sale? Kindly show workings also if possible...
07 April 2010
HP Trading A/c To bal b/f 162000 By Stock reserve 54,000 To HP Drs. 135000 By cash 1035000
To GSOHP 1044000 By GSOHP 348000 To gds rep 12000 By goods repos. 36000 By HP Drs. 162000 To St. Res 36000 By HP st. 108000
To Gen P/L 354000 1743000 1743000
repossessed stock A/c To HP Tr A/c 36000 By HP Tr A/c 12000 By loss on rep (B.F.) 15000 By Bal c/f 9000 36000 36000 To Bal b/f 9000 By C/B A/c 15000 To C/B A/c 2000 To Profit on Repossess. 4000 15000 15000
Trading A/c To op stock 324000 By goods sent on Hp To purchase 1080000 (B.F.) 1044000 By Bal C/f 360000 1404000 1404000
Hp Cl. St. = 162000+135000+1044000-1035000-36000-162000 = 108000 Loading = 50% i.e. 1/2 on cost therefore 1/3 on HPP Revert back to me if u have any further doubt Regards, CA Shakuntala Chhangani
CAclubindia
