consignment
A sends out good costing Rs 200 000 to B. Consinors expenses Rs 5000 . Consignee's expenses in relatio to sales Rs 3000 . 4/5 th goods were sold at 20% above cost. The profit on consignment will be : a) 25 000 b) 31 000 c)25 200 d)5000
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Your Answer
First you have to add consignor expense in 200000 then calculate 4/5th of 205000 so we will get 164000 calculate sales to add 20% of 164000 in the same . so we get sales 196800.and the remaining 1/5th stocks become closing stock. Then add both sales and closing stock and we get 237800. And other side add 205000 and 8000 so we have 213000. And then subtract 213000 from 237800. then we get profit of 24800.
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cpt - common proficiency test