Professional Documents
Culture Documents
Concept Questions
Concept Questions
Concept Questions
Example:-
Parker Company purchased 500 pieces of parker pen for Rs. 15
each. The company sold 427 pieces of pen on following
conditions:-
Less than 10 pieces for Rs. 18.
More than 10 pieces and less than 50 pieces for Rs. 17 on 1%
discount.
More than 50 pieces and less than 100 pieces for Rs. 16 on 2%
discount.
Interest calculation
Ram sold 3 pieces of HCL Computer to Arun for Rs. 10,000 each on credit basis. He decided to
divide the total amount in three instalments and charge 5 % interest on it.
Order processing
A company purchased 50 pieces of HCL Computer from ABC Company on 1.4.2014, but received
only 40 pieces of Computer. Due to damage, 10 pieces returned to his supplier and finally
received only 30 pieces of computer.
REORDER LEVEL
Through reorder level we define minimum level of our stock. After reaching the quantity of our
stock upto the level we must place order to over supplier for item purchase.
Example:-
For a company we want to create a reorder level. If that company has maximum capacity to sell
is 20 computers, so we set reorder level at 10 pieces (minimum order).
Stock item Sub Group Main Group Sub – Category Main Category
SCENARIO MANAGEMENT
ABC company purchase a Computer for Rs. 25,000 on 1-Apr-2014
and the trader wants to know cost of Computer on 31-Mar-2015.
He charges depreciation @ 10% on it.
Final account