inventory

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2011 Dear all,

Company closes it financial year on 31.12.2010 inventory physical counted on 06.01.2011 and the value of inventory as on 31.12.2010 is 20000 in between 31.12.2010 and 06.01.2011 these transcations occurs.

1.Purchases 800
2.sales(on profit) 14000
3.return 5000

Required

what entries do u pass for these transcations and how much is the inventory value, and how do u calculate profit on sales

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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12 July 2011 If upon physical verification, no differnce has found,you can straight away take the value of Inventry as on 31.03.2011. for calculating profit you have to take the Sale & purchase for the period ended on 31.12.2010 & other expenses & revenue for the period. No entry is required for the mentioned transaction. In case of shortage, value of closing stock should be reduced to that extent.

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2011
dear sir,

thanks for your reply,

my question is stock value is 20000 and then the transcation occurs purcahses,sales,return how much is the stock vlaue.

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CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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12 July 2011 Is Rs.20,000 stock value as on 31.12.2010?

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2011 yes sir stock value on 31.12.2010 is 20,000 and then

1. purchase : 800
2. return : 5000
3. sales (30% profit on sales ) : 14000

how much is the stock value, and how to calculate 30% profit on sales and what journal entries do u pass for these transcations