X Ltd. purchased goods at the cost of ₹60 lakh in November, 2020. Till March, 2021, 75% of the stock was sold. The company wants to disclose stock at ₹15 lakh. The expected sale value is ₹16.50 lakh and a commission at 1

CS Executive · Corporate and Management Accounting · PYQS · June 2022
X Ltd. purchased goods at the cost of ₹60 lakh in November, 2020. Till March, 2021, 75% of the stock was sold. The company wants to disclose stock at ₹15 lakh. The expected sale value is ₹16.50 lakh and a commission at 10% on sale value is payable to the agent. What is the correct closing stock to be disclosed as at 31st March, 2021 as per AS-2?
(A) ₹15 lakh
(B) ₹16.50 lakh
(C) ₹14.85 lakh
(D) ₹18.15 lakh

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Corporate Accounting

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