1. X Ltd. furnishes the following stores transactions for the month of January 2019.

Prepare the stores

ledger using:
a. FIFO method
b. LIFO method
Date Particulars Amount
1.1.19 Opening balance 200 units, Value Rs.2000
4.1.19 Receipts from B and Co. GRN No 11 300 units @ Rs.12 per unit
7.1.19 Issues Req.No. 101 400 units
10.1.19 Receipts from M&Co. GRN no.12 400 units @ Rs. 14 per unit
19.1.19 Issues Req. No. 102 300 units
22.1.19 Receipts from N Co. GRN No. 13 200 units @ Rs.16 per unit
28.1.19 Issues Req. No. 103 300 units
30.1.19 Shortage in stock taking 20 units.

2. The following are the details of a spare part of Sunil mills:

1.2.19 Opening stock Nil
1.2.19 Purchases 100 units @ Rs.30 per unit
15.2.19 Issued for consumption 50 units
17.2.19 Purchases 200 units @ Rs.40 per unit
18.2.19 Issued for consumption 100 units
19.2.19 Issued for consumption 75 units
21.2.19 Purchases 150 units @ Rs. 50 per unit
28.2.19 Issued for consumption 100 units.

3. Purchases and Sales of a certain product during March 2019 are set out below:
Purchases: On 1st March, 100 units at Rs.10 per unit; On 12th March, 100 units @ Rs.9.80; on 15th
March, 50 units @ Rs.9.60; On 20th March, 100 units @ Rs. 9.4.
Sales: On 10th March,80 units; On 14th March, 100 units; On 31st March, 90 units.
There was no opening inventory. Determine the cost of goods sold for March as per FIFO method
using:
a. Perpetual Inventory System
b. Periodic Inventory System.

4. From the following data, calculate the value of closing inventory according to LIFO method using:
a. Periodic Inventory method
b. Perpetual Inventory method
Purchases Issues
Dec 5 600 units @ Rs.8 each Dec 6 300 units
Dec 15 500 units @ Rs.9 each Dec 10 500 units
Dec 25 400 units @ Rs. 8.50 each Dec 17 400 units
Dec 30 300 units @ Rs. 9.50 each Dec 26 500 units
Dec 31 200 units
5. From the following data, Calculate the value of stock to be shown (i) by the group by group method
and (ii) by the Item by Item method.
Article Group No. of Cost(Rs) Realisable Realisation
Units per per unit value Expenses
Unit
1 A 100 100 120
2 B 200 200 200 10%
3 A 300 150 156
4 B 400 250 290 10%
6. From the following particulars, Calculate the value of Retail Inventory as on March 31st
Cost (Rs) Retail Price (Rs)
Opening Inventory 30,000 40,000
Purchases 3,08,000 3,82,500
Sales - 3,60,000

7. M Ltd uses the adjusted selling price method for estimating monthly inventory balances. It makes a
gross profit of 30% on net sales. The following is the figures for the year:
a. Opening inventory – Rs.40,000
b. Purchases – Rs.2,30,000
c. Purchase returns – Rs. 20,000
d. Freight Inwards – Rs.10,000
e. Gross sales – Rs. 3,40,000
f. Sales returns – Rs. 40,000
g. Carriage Inwards – Rs. 6,000
Required: Compute the estimated cost of the closing inventory.

8. Determine the value of stock to be taken to the Balance Sheet of Bharath Ltd. as at 31st March
The stock was physically verified on 25th march and was valued at Rs.4,00,000. After stock taking, the
following transactions had taken place till 31St March:
a. Purchases Rs.2,00,000 out of which 20% goods were returned
b. Sales Rs.2,00,000 out of which 20% goods were returned by the customers
c. Goods are sold by the trader at a profit of 25% on cost.

9. The stock was physically verified on 28th March and was valued at Rs.3,00,000. Goods are normally
sold by the trader at a profit of 25% on cost. After stock taking, the following transactions have taken
place till the closure of the month:
Sales of Rs.2,21,600 which includes:
Sales of Rs.10,800 at 20% more than the normal selling price
Sales of Rs.10,800 at 10% less than the normal selling price
Required: Determine the value of stock to be taken to the balance Sheet of Pablo Ltd. as at 31st march.

10. The stock was physically verified on 24th March and was valued at Rs.2,00,000. Goods are normally
sold by the trader at a profit of 25% on cost.
Determine the value of stock to be taken to the Balance Sheet of XY ltd as at 31st march in each of the
following alternative cases:
a. On 21st March, goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a
customer, the period of approval being two weeks.
b. On 21st March, goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a
customer, the period of approval being two weeks. He returns 20% of the goods on 31st March.
c. On 21st March, goods of the value of Rs.1,00,000 were sent on sale or return basis to a customer,
the period of approval being two weeks. He approved 80% of the goods on 31st March,
d. On 21st March, goods of the value of Rs.1,00,000 were sent on sale or return basis to a customer,
the period of approval being two weeks. He returned 20% of the goods and approved the remaining
on 31st March.
e. On 21st March, goods of the value of Rs.1,00,000 were sent on sale or return basis to a customer,
the period of approval being two weeks. He returned 20% of the goods and approved 80% of the
remaining on 31st March.
 f. On 21st March, goods of the value of Rs.1,00,000 were sent on sale or return basis to a customer,
the period of approval being two weeks but it was known that he had pledged 80% of goods with
bank on 31st March.
11. Determine the value of stock to be taken to the Balance Sheet of Tulsi Ltd. as at 31st March, from the
following information
The stock was physically verified on 24th March and was valued at Rs.4,00,000. After stock taking, the
following transactions had taken place till 31st March.
a. Purchases of Rs.2,00,000 out of which 20% of the goods were returned
b. Sale of good units Rs.2,00,000 out of which 20% of the goods were returned by the customers
c. Sale of defective units Rs.1,80,000 at 10% less than the normal selling price
d. On 21st March, goods of the sale value of Rs. 2,00,000 were sent on sale or return basis to a
customer, the period of approval being two weeks. He returned 20% of the goods and approved
80% of the remaining on 31st March.
e. On 23rd March, goods of the value of Rs. 2,00,000 were sent on consignment basis. 80% of these
goods had been sold on 31st March.
f. On 23rd March, goods costing Rs. 2,00,000 were received for sale on consignment basis. 80% of
these goods had been sold on 31st March.
Notes:
a. Goods are sold by the trader at a profit of 25% on cost
b. The sales referred to (d), (e) and (f) are not included in (b) above.
12. The draft Profit & Loss Account of MN Ltd showed a net profit of Rs.1,02,800 after considering the
closing stock of Rs.67,500 on 31st March. Subsequently, the following information was obtained from
the scrutiny of books.
a. The proprietor has taken goods costing Rs.1,000 for his personal use without making entry in the
books.
b. The proprietor has given away goods costing Rs.2,000 as free samples for which no entry was
made in the books of accounts.
c. Purchases for the year included a purchase of furniture costing Rs.200 on 31st March.
d. Sales included a sale of furniture having a book value of Rs. 900 for Rs.850 on 31st March.
e. Invoices for goods costing Rs.1700 have been entered on 26th March but the goods have not yet
been received till 31st March.
f. Goods costing Rs. 4,000 have been purchased and received on 27th March but the invoices have
not been recorded till 31st March.
g. Invoices of goods of Rs.1,000 (Cost Rs.800) were entered on 28th March but the goods were not
delivered till 31st March.
h. Goods of Rs. 4,000 (Cost Rs. 3200) sold and delivered on 29th March but the invoices were not
entered till 31st March.
i. Goods (Cost Rs. 2880, Selling Price Rs.3600) were returned by Ram, a customer on 30th March
and were taken into stock on the same date but no entry was passed in the books.
j. Stock at the end does not include the goods (Cost Rs.6,000, Selling Price Rs. 7500) returned by
Shyam, a customer for which the entry has been already passed.
k. On 26th March, goods of the sale value of Rs. 2,00,000 were sent on sale or return basis to Gopal, a
customer, the period of approval being two weeks. He returned 20% of the goods and approved
80% of the remaining on 31st March. These goods were sent at a profit of 25% on cost.
Required: Calculate the value of stock on 31st March and the adjusted net profit for the year ended on
that date.
13. Determine the value of stock as per books of BB Ltd. as at 31st March from the following
information:
a. The cost of stock as per physical verification as on 24th March amounted to
Rs.3,50,000.
b. Purchases as per Purchase book after stock taking till 31st March
amounted to Rs. 2,00,000 and included the following:
• Rs. 10,000 for goods received till 23rd March
• Rs. 20,000 for goods received on 1st April.
c. Sales as per Sales book after stock taking, till 31st March amounted to Rs.
2,00,000 and included the following:
• Rs. 10,000 for goods delivered till 24th March.
• Rs. 20,000 for goods delivered on 1st April.
d. Goods are sold by the trader at a profit of 30% on cost.

14. The accounting year of Mr. Hariprasad ends on March 31,2019 but the stock on hand was
physically verified only on 15th April. You are required to determine the value of closing stock
at cost as on 31st March 2019.
a. The physical stock at cost was Rs.50,000.
b. The purchases from 1st April to 15th April amounted to Rs.8,000 of which
goods costing Rs.1000 were received on 16th April.
c. The sales from 1st April to 15th April amounted to Rs. 21,500 including the
following:
• Goods sent on consignment Rs.12,500 at invoice price which is made up
of cost plus 25%.
• Goods sent to own branch at invoice price Rs.4,200. Invoice is
made at profit of 20% on cost.
• Goods sold for Rs. 800 at a loss of 20% on cost due to damage on 31st
March.
• Other sales are at a profit of 1/3rd of cost.
• Goods (sold for Rs. 2500) were delivered to the customers on 16th April.
d. On 15th March, goods of the value of Rs.10,000 were sent on sale or return
basis to a customer, the period of approval being 4 weeks. He returned 40%
of the goods on 10th April, approving the rest, the customer was invoiced on
16th April. Mr. Hariprasad makes a profit of 20% on such sales.
e. On 15th March, Mr. Hariprasad had received goods costing Rs.8000 for sale
on consignment basis; 20% of the goods had been sold by 31st March and
another 50% by 15th April.
The sales referred to in (d) and (e) are not included in (c) above.
15. From the following information, ascertain the value of stock as on 31st March 2019 and also
the profit for the year:
• Stock as on 1.4.18 – Rs.20,750
• Purchases – Rs. 76,250
• Manufacturing expenses – Rs. 15,000
• Selling expenses – Rs. 6,050
• Administrative expenses – Rs. 3,000
• Financial Charges – Rs. 2,150
• Sales – Rs. 1,24,500
At the time of valuing stock, a sum of Rs. 5,250 written off on a particular item,
which was originally purchased for Rs.15,000 and One-third of these goods
were sold during the year for Rs. 4,500.
Manufacturing Expenses are attributable to current year‘s purchases only. Barring the transaction relating
to this item, the gross profit earned during the year was 20% on sales