A trader has credited certain items of sales on approval aggregating ` 60,000 to Sales Account. Of these, goods of the value of `16,000 have been returned and taken into stock at cost ` 8,000 though the record of return was omitted in the accounts. In respect of another parcel of ` 12,000 (cost being `6,000) the period of approval did not expire on the closing date. Cost of goods lying with customers should be
A)12,000.
B)54,000.
C)6,000.
D)None of the above.

Question

Quizplus · Accepted Answer

The cost of goods lying with customers is `6,000, which corresponds to the parcel of goods valued at `12,000 for which the period of approval did not expire. The returned goods' cost is not considered here as they are already taken back into stock.

A Trader Has Credited Certain Items of Sales on Approval