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Its usually is overstated if the expenses are understated or the gross profit is overstated
Y add the 500?
if mark up is 50% and if sales have been given to us, we divide the sales figure by 150 and multiply it by 100 to get the cost of sales.
u end up getting 14000 for cost of sales. then 15000+18000-14000 will give u 19000 and that is your closing inventory
Q12 is A
q16 is C
Explanation for q12.
Selling price less the repair costs. compare these values with cost and u take the least value for the stock valuation
so for item A cost=2160 and NRV=2450-190=2260
item B cost=3190 NRV=3060-320=2740
therefore add 2740+2160 and u'll get 4900
Explanation for q16Explanation :/
Explanation for q16
93500 includes 10% of profit therefore u divide 93500 by 110 and multiply by 100 to get the cost. you end up with 85000. out of that 85000 20% is closing stock so take 20% of 85000 which is 17000 and that is the value that comes in your balance sheet.
thenn for the trading account u divide 17000 by 100 and mutliply by 110 to get 18700.
Explanation :/
sorry the 16th one is a but hard to explain :/
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