1.

Closing stock uder value 10000 and opening stock up by 10000,what is profit ?

Answer»

If the Closing stock is undervalued by 10000 and OPENING stock is over valued by 10000.. Then the profit will be undervalued by 20000..

LETS GO by an example...

opening stock=100000
closing stock = 200000

Then profit will be = 200000 - 100000= 100000

..if closing stock is undervalued by 10000 and opening stock is overvalued by 10000.. then.

opening stock= 110000
closing stock= 190000

profit= 190000 - 110000 = 80000


As u can see difference in profits 100000 and 80000 above..so if the Closing stock is undervalued by 10000 and opening stock is overvalued by 10000..then the profit will be undervalued by 20000 or the profit will DECREASE by 20000



Discussion

No Comment Found

Related InterviewSolutions