E Ltd. sends out its accounting machines costing Rs. 200 each to their customers on sales or returnbasis. All such transactions are, however, treated like actual sales and are passed through the daybook. Just before the end of the financial year, i.e., on December 24, 2011, 300 such accountingmachines were sent out at an invoice price of Rs. 280 each, out of which only 90 accounting machinesare accepted by the customers at Rs. 250 each and as to the rest on report is forthcoming. What is totaleffect on sales?

Question

Examsnet · Accepted Answer

Correct Answer is : Sales will be reduced by Rs. 61,500

CA CPT June 2015 Question Paper Fundamentals of Accounting for online practice