Hello, how are you?
Good sir, you tell me.
Good brother, good.
We will move forward with the discussion of inventory
accounting today.
And today is the class that you were eagerly waiting for.
Today that class has come.
Today we have to do a lot of questions and go home.
Today we have to cross the limit.
Today we will do questions.
Today I will show you some questions of study metal.
We have already covered it.
And we are going to do questions in the class today.
So there will be a lot of questions today.
You keep your weapons ready.
Your weapons will be your mindset.
What you have been taught so far.
Your revision and your knowledge.
To tackle those questions.
We will need those things.
So those who have come without studying.
Those who have come without revision.
I request them to press the pause button.
Do revision and then come back again.
Otherwise it may be that we have to face the problem.
But if you have done revision and come up to date.
Then there is no problem.
Then you will have fun.
Okay, let's start.
First of all, there are some things written.
What we were studying yesterday.
Let's talk about them once.
I told you that if we have to find a quantity.
Then we can use periodic system i.e. physical inventory.
Or we can make a register.
We can use perpetual inventory system.
In the case of physical, we can use FIFO, LIFO or weighted
average.
And in the case of perpetual, we can use FIFO, LIFO or
weighted average.
Simple average price is used only in the case of physical
inventory.
Whether it is physical inventory system or perpetual
inventory system.
Both can come together to cross check.
I told you that they are complementary.
They are not mutually exclusive.
What is written above?
It is written above that if the inventory is
interchangeable.
Yes, is inventory interchangeable?
Yes, if the inventory is interchangeable.
Then we can apply all these things.
Which we taught you yesterday.
That apply periodic, apply perpetual.
After that make a register.
FIFO, LIFO, weighted average or simple average.
Which method to follow?
We can follow all these for interchangeable inventory.
What does interchangeable mean?
Same same pieces.
If all the pieces in your inventory are same.
Interchangeable means exactly like each other.
Then we follow these methods.
We saw that there was a condenser in the example.
Whenever we were buying, we were buying a condenser.
If there were 1000 pieces in the stock, then what were 1000
pieces of 1000?
They were condensers.
That's why we can make only one register of them.
That all the condensers came.
How many purchased, how many went, how many condensers were
left.
That's why we can follow perpetual system.
But if the inventory is not interchangeable.
Assume that the items in the inventory are completely
different.
One item is of car.
One item is of TV.
One item is of LED.
One item is of camera.
One item is of refrigerator.
They are completely different items.
So can you make one inventory register for them?
You will not be able to make.
In such a case, how will we calculate the cost of inventory?
Specific identification method will be followed.
What does specific identification method mean?
You will have to do different costing for each one.
Different for camera.
Different for refrigerator.
Different for LED.
Sorry.
Different for TV.
You have to calculate different costing for each one.
You have to calculate the cost of TV.
Basic purchase price.
Plus non-refundable taxes.
Plus directly attributable cost.
You have to do different work for each product.
If that product is not interchangeable.
If they cannot be mixed together, how will you make one
register for them?
Then you have to do different work for everyone.
That's it.
Today I am going to teach you the adjusted selling price
method.
Which is also called retail price method.
This method is adopted when the cost is not ascertainable.
When we are not able to find the cost even after a lot of
efforts.
Then we adopt the adjusted selling price or retail price
method.
Which method is this, sir?
Do you know what's interesting?
This is the method that I taught you in the first class.
You see how useful our first class is even today.
Did I tell you the equation in the first class?
Cost plus profit is equal to sales.
Friends, if I am not able to find the inventory cost.
Then I can also use this equation.
Cost is equal to sales price of inventory.
Minus the profit margin.
I can use this equation.
We already know this.
If you are not able to find the inventory cost directly.
Basic purchase price plus directly attributable cost plus
non-refundable taxes plus conversion cost.
If you are not able to calculate the inventory in this way.
Then you can also use this to find the cost of inventory.
Take the sales price of inventory.
Minus the profit margin.
Then also you will be able to find the cost price of
inventory.
This is an indirect method to find the cost of inventory.
We are still talking about how to find the cost of
inventory.
Don't get confused.
We need two things.
Cost and NRV, whichever is lower.
We have read the entire NRV.
We read a lot about cost yesterday.
I taught you all the direct methods of cost yesterday.
How to find the cost directly.
Today I am telling you the indirect method of finding the
cost.
Sales price of inventory minus profit.
In this way also we can find the cost of inventory
indirectly.
This is also called adjusted selling price method or retail
price method.
Sir, show us the question on this.
Then we will agree.
Yes, I will ask you a question on this.
Why do you worry?
I will ask you a question on this.
Here is our questions book.
There is a flash on your screen.
Our questions book.
We have illustration number 6 in the questions book.
Let's start reading this.
Let's start reading it out.
If you listen to me.
We will do illustration 7 first.
It will be right to do illustration 7 first.
Okay, sir.
If you don't believe, then who will believe?
Get it done, get it done first.
Here we are on 7.
Illustration 7.
Where are you? Come fast.
Here is illustration 7.
From the following information, calculate the historical
cost of closing inventories using adjusted selling price
method.
This is also called ASP method.
Why sir? Is this method in police?
It is not in police.
It is short form.
Adjusted selling price method.
ASP.
What did I ask you?
I just asked for the cost.
You must not be able to calculate the cost in any other way.
That's why I forced you to ask the question.
Indirectly calculate the cost of inventory using sales
price minus profit margin method.
The question also gave you data.
Sales is 2 lakhs.
Purchase is 2 lakhs.
Opening stock is 0.
Closing stock at selling price.
Selling price at selling price is 50,000 rupees.
Let's start doing this question now.
Solution no. 7.
What do we want?
We don't want Chintu candy.
We want cost of inventories.
What will we do for that?
Sir, we will minus sales price of inventories.
Profit margin.
Sales price is given in the inventory question.
50,000 rupees.
If we get to know profit margin, then our work will be done.
What did I teach you in the first class to calculate profit
margin?
When we took the first class of this chapter, I told you
that
If you have calculated the percentage of profit, then it
can have two bases.
Either you can calculate on the basis of cost or on the
basis of sales.
Absolutely right.
If we have to calculate on the basis of cost, then we will
do profit divided by cost into 100.
And if we have to calculate on the basis of sales, then we
will do profit divided by sales into 100.
Yes.
Here in our question, which one is the profit percentage?
Sir, I am asking you, tell me. Sir, we have been given the
sale price of the inventory.
And sir, for the sale price, you have said that the
percentage of the sale price will be used.
So sir, on this basis, you take out the percentage.
If the sale price is given, then you will not get the cost
percentage.
No, you will use the sales percentage.
That's why by doing profit upon sales into 100, we are
going to take out the percentage.
And for this, I will make a small, small, cute trading
account in front of you.
I also made you do this in the first class.
Oh my God, sir, your first class is proving to be very
important.
That's exactly why I made you do it in the first class.
Now assume that someone does not know the trading account,
he comes here.
He does not have a good knowledge of the trading account.
He will say, what is going on?
And now you have to make a trading account in advance in
big questions.
Here it will be small, small.
Opening stock nil.
Was it necessary to write sir?
Don't write, I wrote it by mistake.
Purchases 2 lakh rupees.
2 lakh rupees.
Closing stock is also given to you by sales.
2 lakh rupees.
And you are given with the closing stock.
50,000 rupees.
There are no direct expenses.
So your GP will come straight from here.
Tell me how much is our GP coming?
Sir, to tell the truth, laughter is coming.
Such questions have been included by the institute in our
curriculum.
Sir, we were told at the time of admission that CA is a
very dangerous course.
In CA, you have to ask such questions.
In CA, you have to study in such a way that no one has
studied.
Such questions, sir, such questions.
Sir, even in our 11th book, there were trading accounts
bigger than this.
Did this come today?
Are you talking like this?
We have a lot of questions.
We have a lot of questions, don't worry.
So the total of both our sides came.
2,50,000 and 2,50,000.
Now apply this formula.
Profit divided by sales into 100.
And here will come a twist.
A very interesting twist.
You will feel that the profit is 50,000 rupees.
We divide it by sales.
2 lakhs.
Multiply by 100.
So we will get the profit percentage on the basis of sales.
But my dear friends.
Not just 2 lakhs, I will also add 50,000 to 2 lakhs.
Sir, which 50,000 did you add?
I added 50,000 from the closing stock here.
Why? Because the value of 2 lakhs of sales is at the sale
price.
Closing stock which is 50,000 is also given by the question
at the sale price.
This was the trick in the question.
He gave you the closing stock at the selling price.
It means that profit is also included in this 50,000.
If something is written at the sale price, then there will
be profit in it.
Tell the truth.
Yes sir, there will be.
So while calculating the profit percentage, you will also
have to take this figure in the denominator.
Profit is also hidden in it.
So this 50,000 GP is not just coming from sales.
There is also a margin of some closing stock in it.
That's why when we calculate the percentage on the basis of
50,000,
We will also include the closing stock below.
The GP is above 50,000 and the closing stock is below
50,000.
Now you will see that it will come 20%.
So your profit margin will be 20% of 50,000, i.e. 10,000
rupees.
So your cost of inventory came out to be 40,000.
Congratulations.
I would like to shake your hand.
You answered one question very well.
Very good.
Congratulations.
Sir, we are not used to asking such simple questions.
After today, do not give us such an easy question in this
chapter.
I said okay, I will remember this.
So let's move on to a little difficult question.
Now let's move forward to illustration no. 6.
Now illustration no. 6 is coming.
Let's read illustration no. 6.
By the way, it is difficult to say.
It is not difficult, do not worry.
We will do it in two minutes.
Shoot at sight.
We have such a gun of knowledge.
Shoot at sight.
That's it.
In the paper, either the focus is spoiled.
We are not able to see the target properly.
Or we have not prepared the weapon properly at the time of
revision.
That's why we are not able to shoot.
Otherwise, you will see the same questions in the paper.
Not a single question will be seen from the outside.
I have been telling you this thing again and again.
I am still saying and will keep saying.
Because this is the truth.
This is the truth.
This is Shiva.
This is Sundar too.
Mysore's X, Y and Z are in retail business.
Following information as obtained from records for the year
ended 31st March 2020.
X, Y and Z are in retail business.
I have given you some data of 31st March 2020.
What is the data?
The goods have come from the supplier.
How much is it? 15,75,500 rupees.
Subject to trade discount in taxes.
Have you studied tax or law?
If you have studied tax or law, then subject to means that
this work is yet to be done.
Now these things are left.
Out of 15,75,500, trade discount is yet to be minused.
3% and then sales tax is yet to be imposed.
11% above that.
You will remember in the notes.
First we do discount minus.
After that we charge tax.
Sir, why do we do this?
If we charge tax first and then give discount, then?
Don't do this by mistake.
It is possible that you will get a call from Modi ji in the
morning.
He will say, how are you a chartered accountant?
You are going to ruin our government.
So what will you say to him?
You are also talking about bringing institute in our
competition.
Will we ruin you or not?
We cannot argue.
He is the government.
What should we do?
We can do a sweet movement.
But we are not used to arguing.
And even if 10 institutes come like this, don't worry.
We were alive, we are alive and we will be alive.
Because we have one thing.
Hard work and knowledge.
No institute can take anything from it.
There is no substitute for it.
Hard work and knowledge will always, always, always live.
Tomorrow, today and tomorrow.
No matter what the time is.
Okay, let me tell you why this happens.
Why will you get a call from Modi ji?
If you pay tax and then give a discount.
Then you have given a discount from the tax also.
First you added tax.
Then you gave a discount in the combined figure.
Means you gave a discount on the tax also.
Now the government will not give a discount from its money.
The government says, brother, you first give a discount
from your amount and deal with it.
We will not give a discount.
Okay, sir.
Packing and transportation charges ₹ 8,750.
The sales has been done ₹ 2,45,500.
This time also the closing stock has been given to you at
the sale price.
₹ 2,35,000.
Profit is also included in this.
Find out historical cost of inventory using adjusted
selling price method.
Do you know what this question is?
This question gave you the sale price of the closing stock.
This was also in the last question.
And how do we get inventory?
Cost and sale price whichever is lower.
So the question we just solved a while ago.
How much was the cost in that? ₹ 40,000.
And the NRV of the sale price inventory was ₹ 50,000.
So what will we write in the answer in our final trading
account? ₹ 40,000.
But we did not show it there.
Because illustration 7 said, just tell the cost of the
closing stock.
No need to lower the cost or NRV.
Okay.
Question 6 is saying the same thing.
It is saying that the sale price is ₹ 2,35,000.
Just tell us the cost of the inventory.
After that, there is no need to lower the cost or NRV.
Just tell us the cost.
Okay.
Okay, sir.
So wherever there is a profit, the cost will obviously be
lower than the sale price.
Let's try to solve this question too.
Solution number 6.
Let's go with it now.
What do we need?
Cost of inventory.
We have been given the sale price of inventory.
If we minus the profit margin from that, then our answer
will come.
₹ 2,35,000.
To find the profit margin, we will make a working note.
Trading account.
Debit and credit.
In the trading account, the opening stock is not visible at
all.
We can see the purchases.
We will write 2 purchases.
In Purchasing, write 15,75,500
Minus 3% discount
Then the value that comes, you have to add 11% tax
Minus 3% discount and plus 11% tax
Where is our calculator?
Here it is 15,75,500 Minus 3% 15,28,235 Plus 11%
This comes to 16,96,341 16,96,341 16,96,341 16,96,341
Thereafter, Packaging
We have some direct expenses
Packaging And Transportation Charges 87,500 Sales 22,45,500
And Clothing Stock is also at sale price 2,35,000 Brothers
Look at Gross Profit
Brothers and Sisters
Look at how much Gross Profit is coming
We don't like this thing about alcohol
It's okay
It's not necessary to like everything 22,45,500 Plus
2,35,000
Minus Which means 341
Minus 87,500
Is equal to 6,96,659 Yes 6,96,659 And how much is the total
of both sides?
Will have to put again 22,45,500 Plus 2,35,000 24,85,000
24,85,000 Therefore Profit Margin in Percentage
Is equal to
Profit Divided by Sales
Don't forget to add Clothing Stock this time as well
Because it is also at sale price
Into 100 6,96,659 Divided by 22,45,500 Plus 2,35,000
Into 100
Let's see what it comes
Let's check this out
6,96,659 Divided by 24,85,000 Multiply by 100 28.08% This
is coming as 28.08
After 28.08 take 5.09 28.09% Of Sales
So here you do 2,35,000
Into 28.09% Minus 2,35,000 Minus How much will this come?
2,35,000 Multiply by 28.09% 66,001 Our answer has come
finally 2,35,000 minus 64,001 168,988 Note it down 168,988
Come on
Yes Sir
We have written it down
Very good
You have done very well
It has been cut a little
28.09% 168,988 is our final answer
This is the Adjusted Selling Price Method
When we are not able to get the cost directly
From FIFO, LIFO, Weighted Average
Because we don't have the cost of individual items
We are not able to follow that method In such cases, to get
the cost
We indirectly use This method
ASP method
It is also called the Retail Price Method It is also called
the Retail Price Method
Okay Okay Sir
Here you go
Now Class Notes will come at the top Class Notes
Come at the top
OBS Hurry up
Here you go
What is the last point?
Standard Cost Method will be applied When there is frequent
change in price per unit of goods
And goods are purchased frequently by the business There is
not a single question in our material on this
Why Sir?
Standard Cost is a part of Costing
Which is our subject
There is a separate costing of 100 marks
In the intermediate That part is the Standard Cost Method
So applying the Standard Cost Method
Means you are not able to use the Adjusted Selling Price
Method
Neither is your inventory interchangeable
You are not able to get the cost physically, perpetually
So in such cases
You call your younger brothers and sisters Who are our
younger brothers and sisters?
Cost and Management Accountant
CME You call them
And you ask them
What will be the cost of this item?
According to the rules of costing
Take it out and tell us
Standard Cost means By applying the rules of costing
To get the value
To get the cost
Here we are not going to read it at all
Because this is not the syllabus of our accounting
This is the syllabus of costing
Neither is there any question on this in our material
I have written it in the notes Because I believe that
If the whole thing is written at one place
Then the notes will be completed for the future
Let's go up today
Yes Sir
Why are you doing scary things?
Up means let's go up in the notes
What did you think?
Where am I talking about going?
No, no, no
Don't think like that
1, 2, 3, 4
This topic is over
Periodic and Perpetual is also over today
I am going to start the discussion of Inventory Staking
I am going to start with Inventory Staking now
And I will take you straight to the question
We will go straight to the question Straight to the question
Because we will understand it from there Then it will be
easy for us to read the notes
Which question is coming?
First one question is in the middle I think there is one
more topic
Wait a minute
8th question is more
This is a miscellaneous type of question Should I do 8th
question for you?
Sir, do it later
Okay fine
Let's come to Inventory Staking on 9th We were talking
about Inventory Staking
Let's do 9th question
Let's start reading 9th question
Let's start reading 9th question out
A trader prepared his accounts on 31st of March every year
Due to some unavoidable reasons
No Inventory Staking could be possible till 15th of April
2020
On which date the total cost of goods in his godown came to
5 lakh rupees
What is the meaning of this line?
On 31st of March
He was calculating his inventory
On 31st of March
Due to some unavoidable reasons
Inventory Staking could not be possible
Let's assume that we went for physical verification We were
installing physical system
Periodic system
We saw that there was a lot of work going on
We didn't like to stop it
Because we have to stop work for physical system
And secondly
It is also possible that there is corona
This is the latest example of corona
Corona came
Lockdown was imposed for 15 days
And after 15 days
Inventory Staking was calculated
On 15th of April 2020
On which date do we need inventory?
On 31st of March 2020
Because on 31st of March we will make trading account
We will put it in it
On 31st of March we will make P&L balance sheet
We will put it in balance sheet
But when do we have inventory? 15 days ahead
On 15th of April 2020
We have inventory of 5 lakhs
And its cost is 5 lakhs
On 31st of March
The financial statement that we had to make
Then it could not be made
If we could not take stock on 31st of March
Then on 31st of March
Trading P&L balance sheet could not be made
Yes On 31st of March
Trading P&L balance sheet could not be made
Sir, we have heard that 31st of March is the last date
Then trading P&L balance sheet should be made
If it is not made on 31st of March
Then how?
Practically it does not happen
If any year ends on 31st of March
Then it takes 1-2 months to close the accounts
Practically If 31st of March is over 31st of March 2020
Then it takes at least a month to close the accounts
good companies, it takes 1-2 months.
If you are not able to take the inventory, then how can you
close it for 31st March.
There is no such problem.
Income tax gives you 6 months time, ROC also gives you 6
months time, to file a financial statement it takes 6
months time.
You can file it after 6 months of closing the year.
So there is no such problem that we need the financial
statement only for 31st March.
No, practically this does not happen.
It is not even possible practically. When you work, you
will understand the article.
So on 15th April, i.e.
15 days later, we have the inventory cost of 5 lakhs.
Following facts were established between 31st March and
15th April, 2020.
Now you have to come back from 15th April, 2020 to 31st
March, 2020.
So during these 15 days, whatever transactions took place,
if we get to know that, will we be able to reach 31st March.
Of course, sir.
The question is, take this dear children, we will tell you
what happened in 15 days.
Sales were 4,10,000 rupees. Purchase was 5,340 rupees. Sale
return is 10,000 rupees.
Profit margin is also told, 20% on sale.
We are telling you to find the value of the inventory on
31st March, 2020.
I had written a note.
So in this question, take out the cost directly, the same
inventory value will come out.
The matter is over.
So you have to come back 15 days.
Do you know where the problem is?
The rule is cost or NRV, whichever is lower. But most of
our questions are drafted.
We are after the same thing that how will the cost come
out, tell me this.
So the child says, I had learned that cost or NRV,
whichever is lower.
But here that thing has not come anywhere, it is not being
applied anywhere.
How will it be applied? The question is not drafted in that
way.
The question says that everyone knows how to take out NRV.
Everyone will also know how to take its lower. It is a
matter of cost.
Children should know how to take out the cost. There are
more questions on it.
Okay, let's do illustration 9.
Illustration number 9.
First of all, I will make a picture in front of you.
This is the first time you are asking such a question.
That's why I am making a picture in front of you.
This is the date, 31st May 2020, the day we are looking for
the cost of the stock.
After 15 days, I will make 15 days big.
After 15 days, on 15th April 2020, the cost of the stock
has been given 5 lakhs.
And what happened during these 15 days, that too has been
told.
What happened? Number 1.
We did sales of 4,10,000 rupees.
Sir, in the question bracket, it is written including cash
sales, 1 lakh rupees.
You have given only to mislead.
Only to trouble that you have made a mistake in haste.
There is no logic in this. Listen to me.
They are saying that we did a sale of 4,10,000 rupees, in
which cash sales of 1 lakh.
Whether it is cash sale or loan sale, the inventory will go
out of your warehouse.
Whether it is loan sale or cash sale, the inventory is
affected.
So, you will include 4,10,000 rupees in your calculation.
Cash or loan does not matter.
Cash sale, the inventory will go out of your warehouse.
You will get the money along with it.
Loan sale, the inventory will go out of your warehouse.
You will get the money later.
So, there is no difference on the inventory, whether it is
cash or loan.
Inventory has to go out of the warehouse in the case of
sale.
Okay, sir.
Thereafter, the same thing is about the purchase.
The purchase is of 50,340 rupees.
And they are saying that the cash purchase is of 1,900
rupees.
Whether you have bought cash or loan, you have brought the
goods.
The effect is on the inventory.
It will have to be included in the entire calculation.
The effect is on the inventory.
Cash is given along with money, loan is given.
So, you will give later.
What does the inventory have to do with cash or loan?
No. 3
You have been told the sale return of 10,000 rupees.
They have also given you a news.
The percentage of profit is 20% on sales.
Before I move ahead in this question,
I would like to make an equation with you.
Listen carefully.
In the beginning of the year,
Why are you calling it the beginning of the year, sir?
Call it the closing of March 31, last year or the beginning
of April 1.
It is the same thing.
In the beginning of the year, I considered the stock to be
X.
I considered this answer to be X.
In this, if I buy 50,340 rupees,
I will add that.
If I sell 4,10,000 rupees,
I will subtract that.
Will the closing stock come to me?
Of course, it will come.
I bought this much in the beginning.
I sold minus this much.
The remaining stock will come.
There is no problem in it.
But keep one thing in mind.
Sales is not 4,10,000 rupees.
Sales is 4,10,000 minus 10,000.
It is a sale of 4,00,000 rupees.
Because the sale return has to be subtracted.
How much is the sales? 4,00,000 rupees.
One more thing to keep in mind.
Sir, The 50,340 rupees is at the cost price.
Minus 4,00,000 rupees is at the sale price.
So, from the cost price figure, the sale price figure
cannot be minused like this.
It is equal to the closing stock that I have given you,
5,00,000 rupees.
That is also at the cost price.
That means this equation cannot be solved.
One figure is at CP, one figure is at CP, and one figure is
at SP.
This equation is not solvable.
You will have to bring this sale price at the cost.
Only then will this equation be solvable.
How will we bring this at the cost?
It is very easy.
X plus, this is already at the cost, 50,340 minus, if we
have to bring 4,00,000 at the cost, then from the sale
price, subtract the profit margin.
It is a sale of 4,00,000.
What is the profit? 20% of the sale, 20% of 4,00,000, that
is 80,000 rupees.
So, we have subtracted the profit from the sale.
Now, this figure is also at the cost price.
50,340 is also at the cost price, minus 4,00,000 minus
80,000.
3,20,000, 3,20,000, this is also at the cost price, is
equal to 5,00,000, this is also at the cost price.
Now, subtract X.
X is 5, minus 50,340, plus 3,20,000.
So, this is 8,20,000 minus 50,340,000.
7,6,9,6,6,0, 7,6,9,6,6,0.
Did you get my value?
Did you find it difficult?
No.
We have to present this in a good way.
By the way, if I write the equation, what is it becoming?
Just see.
If I write it as an equation, what is it becoming?
What was 5,00,000 rupees?
Closing stock, on 17th April, minus,
we can also call this 5,00,000, stock on date of inventory
taking.
The day the inventory was taken, the day the physical stock
was taken, that day the stock was 5,00,000.
What did I do minus?
What is 50,340?
Purchase.
What did I do plus?
Sales.
And sales on what?
On cost.
Cost of sales.
Which we also called COPS.
The goods that were sold, we took their cost here.
Okay? Because only then the equation will be solved.
Is equal to?
Our answer will come out.
Whatever it is.
So you can see,
I have minus the purchase and plus the sales, the cost of
sales.
Remember one rule from this.
Whenever we go backwards,
when we come back, from 15th April to 1st April, in that
case, we will minus the purchase and plus the sales.
But suppose we had the opposite scene.
If we had been given this initial figure, and had to take
out this figure, then there was no problem.
Then plus the purchase, minus the sales, it would have come
out straight.
Then we would have plus the purchase and minus the sales.
But there are no straight questions.
That Kapil Sharma is also going there, on Instagram.
Straight, straight, nothing happens in life.
Right? So straight, straight, nothing happens in your exams
either.
You will get more questions going backwards.
Minus the purchase, plus the cost of sales, you will get
more questions like this.
Hold on for a second.
Let's start, now if there was a good format for this, then
give it to me, it doesn't look good.
Let's give it a good format, then we do the calculation.
Calculation of Inventory or Cost of Inventory on 31st March
2020 Particular Amount
We started with Inventory on 15th April 2020, 5 Lakh Rupees
Minus purchases between 1st April and 15th April 2020
Minus purchases between 15th April and 15th April 2020
Plus Cost of Goods Sold between 1st April and 15th April
2020
Which was 3,20,000 Rupees
How did it come?
First Sales was 4,10,000 Rupees
Minus Sale Return 10,000
Then minus 20% from 4 Lakh
Then it came 3,20,000
And finally the answer was 7,69,660
You have to present like this in your exams
Let's read the notes of Inventory Staking
Inventory Staking is also over
Let's read the notes of Inventory Staking
Whenever Physical Inventory is taken, it is called
Inventory Staking
In such a case, all the business activities have to be
closed down
Normally, Inventory Staking is done on the last day
But many times we are not able to take Inventory Staking on
the last day
That's why we have to take Inventory Staking after the last
day of accounting year
After 31st March
It can be taken even before 31st March
In that case, the equation will run smoothly
But later questions are more, so we will talk about that
In such a case, all the transactions related to Inventory
Whichever purchase or sale you have done
Between last day of year i.e.
31st March 2020
And Inventory Staking date i.e.
15th April 2020
Has to be adjusted
You have to adjust the transactions for those 15 days
If we are doing backward calculation
Coming back to 15th April to 31st March
We will add sales and minus purchases
We will also add cost of sales in sales
And such questions are more
But if we have to go straight many times
Then we will plus purchase and minus sales
There is no question
Okay, we have discussed about Inventory Notes
Inventory Staking is not a big issue
Sir, ask us more questions on this
Let me give you a 10th illustration on this
I had told you that you will have to ask many questions
Illustration 10
It is big in appearance
Only the size is big
By the way, the man is very good
Just like comedian Kiku Sharda
Just looks good
Is Kiku Sharda's name something else?
I don't know
Inventory Staking for the year ended 31st March 2020
Was completed by 10th April 2020
Couldn't take Inventory on 31st March 10 days got late
Calculated Inventory on 10th April
Took Physical Stock
Got to know that cost of Rs.
16,75,000 is coming
Cost after 10 days was Rs.
After the end of accounting year
And till the date of completion of Inventory Staking
We are talking about 10 days
From 1st April 2020 to 10th April 2020
What happened in 10 days?
Sales for the next year were made for Rs.
Sales of Rs.
In which Profit Margin is attached
And this time read Profit Margin carefully
It is written 33.33% on cost
Value of sales is given
Rs. 68,750 is the sale price
And percentage is given for cost 33.33% means 1 by 3
So, on sales figure
Cost percentage can't be given
It was taught in 1st class
So, what to do?
Change cost percentage to sale percentage
It is a left handed game
It was taught to you 1 by 3 on cost means 1 by 4 on sale
So, you got the percentage of sale
Multiply 1 by 4 by 1 by 4
Sale price is Rs.
Profit will come
Keep this in mind
Purchases for 10 days were of Rs.
But there is a discount of 10% i.e.
Rs. 9000
So, net purchase is Rs.
During these days
Goods were added to the inventory at markup price of Rs.
In respect of sale return
Some sales returns are of Rs.
And markup price means
Rs. 3000 is also written on sale price
From this also, Profit Margin is adjusted
Or we will reduce it from Rs.
Like we did in last question
Rs. 10,000 out of Rs.
And on that, we will take 1 by 4 profit and reduce it
Just like last question
Till here, data is same to same
Two more things are written in this question
Let's do one thing
Let's solve till here
Then we will read two more things
Okay sir
Let's solve till here
Solution No.
Calculation of inventories on 31st March 2020
Particular amount
Okay We have been given
Cost of inventory on 10th April 2020
That is Rs.
Rs. 16,75,000
What we will do in this
First, we will minus the purchases
Let's minus purchases
Purchases between 1st April 2020 to 10th April 2020
How many purchases are there?
Sir, Rs.
And show how Rs.
81,000 came
Rs. 90,000 minus 10% discount
This is Rs.
Then what we will add in this
Cost of goods sold
Between 1st April 2020 to 10th April 2020
How will that come?
Sir, how many sales are there?
Rs. 68,750
Okay Minus sales return from that
This is sales
Minus sales return from that
How many are there?
Rs. 3,000
Then the net sales that came to us
Rs. 65,750
Minus profit margin from that
In Rs.
Profit margin into 1 by 4 1 by 4
Okay Then how much will this come?
Rs. 65,750
Divide by 4 65,750 Rs.
Something is coming
Rs. 49,312
Let's plus this
Rs. 49,312
Okay Rs.
Let's move ahead
In your study metal
They have done it in a different way
Don't look at that
The solution we have done so far
According to that
Now let's read the next two lines of the question
Let's read the next two lines of the question
Very simple things are written
They are saying
After inventory taking
It was found that there were certain very old slow moving
items
Costing Rs.
Which should be taken at Rs.
To ensure disposal to an interested customer
Some stock was bought at Rs.
They are saying
After taking inventory
Means the stock of Rs.
11,250 is included in this
It has to be brought at Rs.
Means it has to be brought at Rs.
Why? It has to be brought at lower
Cost of NRV whichever is lower
So it has to be brought at lower
From Rs.
6,000 it has to be brought at lower
Okay, second thing
Due to heavy flood
Certain goods which were bought at Rs.
15,500 came late
The customer had asked us a little earlier
We were able to deliver it late
That's why the customer is saying
Now I am ready to take only in 12,500, not in 15,500.
Let me give or let me go.
You have delayed the goods.
You have delayed in delivering the goods to the one who had
to be given.
That's why he is saying that I will give less than 3000.
So from 3000, your value will go down.
Because this inventory is also not able to be sold in
15,500.
This will also be sold in 12,500.
You will have to bring its NRV down from 3000.
So first minus 6000.
In the name of slow moving item.
And minus 3000.
Reduction due to late delivery.
And now see what your answer is coming out.
16,75,000 minus 81 plus 49,312 minus 900.
16,34,312.
Sir, the answer is coming in the material of the institute.
Our 16,34,312.
There is a difference of 2 rupees.
They took the sale item separately.
Separated the margin in it.
We added it there to make it easy.
That's why it's coming because of rounding off.
There is no problem anyway.
You will get the full number.
You don't have to do this in the exam.
Just because of rounding off.
Okay.
So the inventory is also taken.
We have our topic.
All are finished.
Our all topics are finished.
Conceptually, we don't have anything left to read.
Now in the next two classes.
We are going to do questions, questions and questions.
And you will find already.
Many questions of your material have already been covered.
Don't think.
The questions I have done today have been covered.
No.
5 questions have already been covered in the previous class.
As an example.
So 5,4,3,4,8,9 questions have already been covered.
And you have 11 illustrations.
10,11 in the material.
So only practical.
And those MTB and RTB.
We have the remaining classes to do their questions.
Review it.
We will meet you in the next class.
Thank you so much.
Bye bye and take care.
In the joy of finishing all the topics.
See you in the next class.
Thank you.