What is the correct Treatment of Goods sent on approval - 1. For the Goods approved 2. For the goods Not yet approved While making the Memo Trading Account to calculate Closing Stock.
1. For the Goods Approved :- No Adjustment Required for this. Only GP is Calculated on the Amount Given on Sales. 2. For Goods not yet approved :- Selling Value of Goods sent on Approval is Deducted from Sales. Cost of Goods Sent on Approval is shown on Credit Side of Memorandum Trading A/c. GP is Calculated on the Net Value. Balance Stock (excluding Cost of Goods Send on Approval) will be taken as Stock on Date of Fire. Hope You have Understand. Please upvote me.ð???
Pls share relevant question for us to understand your query better.
Sir that student was asking for Provisions only...Not about Question. ð???ð???