(Pvt.) Ltd. is a manufacturing company. At 30-06-2021 the Company had a closing stock in trade, cost of whi was calculated by the accounts department as Rs. 370,000. Further information revealed that sale price of that stock was estimated as Rs. 800,000, a cost of completion of Rs. 410,000 was required to be incurred and selling expenses would be Rs. 50,000. The Accounts department have shown the value of above said closing stock in trade in the Financial Statements a Year Ended at 30-06-2021 as Rs. 370,000. During audit the detail calculation of the above said value revealed as follows: NRV= 800,000-410,000 = 390,000 Cost of Stock = 370,000 %3D Required: Being an auditor of ABC (Pvt.) Ltd. you are required to calculate the accurate value of closing stock as at 30-06-2021 which must be included in the Financial Statemente esF edsd 30 o e 9o04

(Pvt.) Ltd. is a manufacturing company. At 30-06-2021 the Company had a closing stock in trade, cost of whi was calculated by the accounts department as Rs. 370,000. Further information revealed that sale price of that stock was estimated as Rs. 800,000, a cost of completion of Rs. 410,000 was required to be incurred and selling expenses would be Rs. 50,000. The Accounts department have shown the value of above said closing stock in trade in the Financial Statements a Year Ended at 30-06-2021 as Rs. 370,000. During audit the detail calculation of the above said value revealed as follows: NRV= 800,000-410,000 = 390,000 Cost of Stock = 370,000 %3D Required: Being an auditor of ABC (Pvt.) Ltd. you are required to calculate the accurate value of closing stock as at 30-06-2021 which must be included in the Financial Statemente esF edsd 30 o e 9o04

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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