Explanation
The cost of inventory includes the cost of purchased merchandise, less discounts that are taken, plus any duties and transportation costs paid by the purchaser. If the merchandise must be assembled or otherwise prepared for sale, then the cost of getting the product ready for sale is considered part of the cost of inventory. Also, the cost of finished goods inventory includes the cost of conversion (labour, overheads, etc.).
As per question,
Calculation of debtors
It implies Rs 7,000 from Vinod + Rs 9,000 from Sudhir + debtors balance at Rs.72,000 (Dr.) = Rs 88000
Calculation of creditors
It implies pay Rs.8,000 to Vinod + pay Rs.8,000 to Sudhir + creditors balance at Rs.39,000(Cr.) = Rs 55,000
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