Arrange the statements in the correct sequence relating to change in inventories.

A. During the accounting year the firm produces ₹1,000 worth of goods and sells ₹800 worth of goods.

B. This results in change in investments worth ₹200.

C. A firm had an unsold stock worth ₹100 at the beginning of the financial year.

D. Hence the inventories at the end of the year is equal to ₹300.

Choose the correct answer from the options given below :

C, A, B, D

The correct answer is option (3) : C, A, B, D

1. Statement C: "A firm had an unsold stock worth 100 at the beginning of the financial year." This is where we start, with the initial inventory at the beginning of the year.

2. Statement A: "During the accounting year the firm produces 1,000 worth of goods and sells 800 worth of goods." This statement describes the production and sales activities during the year.

3. Statement B : "This results in a change in inventories worth ₹200." This statement follows logically after statement A because it explains the change in inventories due to the production and sales activities.

4. Statement D : "Hence the inventories at the end of the year are equal to ₹300." This statement concludes the sequence by describing the final inventory value at the end of the financial year.