Stock take discrepancies between a count sheet and recorded quantities in the ledger may arise due to:
I Theft of stock during the year
II Stock purchased under FOB destination terms being in transit at period end
III A consignee including consignment stock in their physical count
IV Sales returns not being processed into the ledger
A) I, II and III;
B) II, III and IV;
C) I, III and IV;
D) I, II and IV.

Question

Stock take discrepancies between a count sheet and recorded quantities in the ledger may arise due to:
 I Theft of stock during the year
II Stock purchased under FOB destination terms being in transit at period end
III A consignee including consignment stock in their physical count
IV Sales returns not being processed into the ledger
A) I, II and III;
B) II, III and IV;
C) I, III and IV;
D) I, II and IV.

Quizplus · Accepted Answer

Theft of stock (I) reduces physical stock without affecting ledger records. Consignment stock (III) should not be included in the consignee's count, causing discrepancies. Sales returns not processed (IV) lead to differences between physical and ledger quantities.

Stock Take Discrepancies Between a Count Sheet and Recorded Quantities