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I had a doubt in this problem sent below....the godown of aman ltd were affected by fire on a particular date...in additional information it is given that the sales upto that date on which fire occured includes rs 80000 for which goods had not been dispatched.... I had a doubt in this ... The goods are not dispatched that means good are in the godown then why we are deducting that 80000 from that sars amount 620000????
Answers (1)
When the goods are sold and not dispatched it is generally assumed that the The sale has been recorded in the books but the goods are still in the godown because dispatch has not taken place. Therefore, these goods are still part of the closing stock on the date of fire. So we will reduce it from the sale value
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