Sales for the year ended 31st March, 2017 amounted to Rs.10,00,000. Sales included goods sold to Mr. A for Rs.50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer’s risk. Therefore, such goods should be treated as part of:

Sales for the year ended 31st March, 2017 amounted to Rs.10,00,000. S

1.	Sales for the year ended 31st March, 2017 amounted to Rs.10,00,000. Sales included goods sold to Mr. A for Rs.50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer’s risk. Therefore, such goods should be treated as part of:
A.	Sales
B.	Closing inventory
C.	Goods in transit
D.	Sales return
Answer» B. Closing inventory