M/s Manas, Profit and loss account showed a net profit of ` 32,00,000,
after considering the closing stock of ` 30,00,000 on 31st March, 2024.
Subsequently the following information was obtained from scrutiny of the
books:
(i) Purchases for the year included ` 1,20,000 paid for new electric
fittings for the shop.
(ii) M/s Manas gave away goods valued at ` 3,20,000 as free samples
for which no entry was made in the books of accounts.
(iii) Invoices for goods amounting to ` 20,00,000 have been entered on
25
th March, 2024, but the goods were not included in stock.
(iv) In March, 2024 goods of ` 16,00,000 sold and delivered were taken
in the sales for April, 2024.
(v) Goods costing ` 6,00,000 were sent on sale or return in March,
2024 at a margin of profit of 33-1/3% on cost. Though approval was
given in April, 2024 these were taken as sales for March, 2024.
You are required to determine the adjusted net profit for the year ended
on 31.3.2024 and calculate the value of stock on 31st March, 2024.
(10 Marks)
June 23, 2024
