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Chetan Ltd recorded the following information as on 31st ,2004 stock(1-4-03) Rs40,000 Purchases Rs80,000 sales Rs100,000 Itis noticed that goods worth Rs30,000 were destroyed due to fire against this, insurance company accepted the claim of Rs14,000. The company sells good at cost 33%.The value of closing inventory,after taking into account the above transation is (A)75,000 (B)15000 (C)25000 (D)NIL

Chetan Ltd recorded the following information as on 31st ,2004 stock(1-4-03) Rs40,000 Purchases Rs80,000 sales Rs100,000 Itis noticed that goods worth Rs30,000 were destroyed due to fire against this, insurance company accepted the claim of Rs14,000. The company sells good at cost 33%.The value of closing inventory,after taking into account the above transation is (A)75,000 (B)15000 (C)25000 (D)NIL

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answer given in book is 15,000

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the given benefit % is on cost or deals?

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shutting stock = 53200*+80000-1000000+14000-30000 = 17200 *profit 33% on cost = 40000+33% on 40000 = 53200

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