A company sends its cars to dealers on 'sale or return' basis. All such transactions ire however treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had cost ` 55,000 each have been sent on sale or return and have been debited to customers at ` 75,000 each, cost of goods lying with the customers will be

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The cost of goods lying with the customers will be the total cost price of the two cars, which is ` 55,000 each. Therefore, the total cost is ` 55,000 + ` 55,000 = ` 1,10,000.

A Company Sends Its Cars to Dealers on 'Sale or Return