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The cost of inventory as per physical verification as on 24th March 2007 was Rs. 4, 00, 000. Goods are sold at a profit of 25% on cost.
On 27th March, goods on the sale value of Rs. 1, 00, 000 were sent on sale on return basis to a customer, the period of approval being two weeks. He returned 20% of the goods and approval 80% of the remaining on 31st March.
The cost of inventory as per book is

 
Rs.4, 00, 000
Rs. 3, 36, 000
Rs. 4, 48, 000
none of these

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Cost of good sold - 80000n80% of goods - 80000×80÷100=64000nInventory - 400000-64000=336000

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