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CA Intermediate · Cost and Management Accounting · Cost Accounting Systems

Rohan Foods Ltd maintains non-integrated accounts. Opening Stores Ledger Control balance ₹2,00,000. Purchases ₹7,00,000; materials issued to production ₹6,20,000; indirect materials issued ₹40,000; materials returned to stores from production ₹30,000; materials returned to supplier ₹20,000 (from purchases). Shortage found in stock-taking ₹15,000 (treated as abnormal loss). The closing balance of the Stores Ledger Control A/c is:

The closing balance is ₹2,35,000. Add purchases and production returns to opening stock to get ₹9,30,000, then deduct issues ₹6,20,000, indirect materials ₹40,000, returns to supplier ₹20,000 and the abnormal shortage ₹15,000, a total of ₹6,95,000.

  1. A₹2,35,000Correct
  2. B₹2,50,000
  3. C₹2,65,000
  4. D₹2,95,000

Explanation

Debits: opening 2,00,000 + purchases 7,00,000 + returns from production 30,000 = 9,30,000. Credits: issues to production 6,20,000 + indirect materials 40,000 + returns to supplier 20,000 + shortage 15,000 = 6,95,000. Closing = 9,30,000 − 6,95,000 = 2,35,000. Check: 2,00,000+7,00,000−20,000 = 8,80,000; less net issues 5,90,000 and 40,000 and 15,000 = 2,35,000. Omitting the shortage gives 2,50,000.

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