Ravi Ltd. purchased goods at the cost of ₹40 lakh in October, 2019. Till March 2020, 75% of the stocks were sold. The Company wants to disclose closing stock at ₹10 Lakh. The expected sale value is ₹11 Lakh and a commiss
CS Executive · Corporate and Management Accounting · PYQS · June 2021
Ravi Ltd. purchased goods at the cost of ₹40 lakh in October, 2019. Till March 2020, 75% of the stocks were sold. The Company wants to disclose closing stock at ₹10 Lakh. The expected sale value is ₹11 Lakh and a commission at 10% on sale is payable to the agent. What is the correct closing stock to be disclosed as at 31.3.2020 as per AS-2 ?
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Corporate Accounting
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