Multiple choice

On April 7, 2016, i.e. a week after the end of the accounting year 2010-11, a company undertook physical inventory verification. The value of inventory as per physical inventory verification was found to be Rs. 35,000. The following details pertaining to the period April 01, 2016, to April 07, 2016 are given as follows:1. Goods costing Rs. 5,000 were sold during the week.

  1. Goods received from consignor amounting to Rs. 4,000 were included in the value of inventory.
  2. Goods earlier purchased, but returned during the period amounted to Rs. 1,000.
  3. Goods earlier purchased and accounted, but not received were for Rs. 6,000.

After considering the above, what will be the amount of inventories held as on March 31, 2016?

  1. Rs. 27,000

  2. Rs. 19,000

  3. Rs. 43,000

  4. Rs. 51,000

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The total amount of inventory is arrived at in the following manner: Total inventory = 35,000 + 5,000 - 4,000 + 1,000 + 6,000 = Rs. 43,000 Goods sold worth Rs. 5,000 will be added back. Goods received from the consignor will be deducted. Goods earlier purchased, but returned will be added back. Goods earlier purchased, but not received will be added back.

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