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Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs 2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?
- a)Rs.86,200
- b)Rs.70,000
- c)Rs. 75,200
- d)Rs. 76,800
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs...
Given:
Cost of goods = Rs.2,00,000
Mark-up = 25%
Selling price = Cost price + Mark-up = Rs.2,50,000
Commission rate = 2%
Goods sold = 4/5 * Rs.2,00,000 = Rs.1,60,000
Calculation:
1. Cost of goods = Rs.2,00,000
2. Mark-up = 25% of Cost price = 0.25 * Rs.2,00,000 = Rs.50,000
3. Selling price = Cost price + Mark-up = Rs.2,00,000 + Rs.50,000 = Rs.2,50,000
4. Commission on sales = 2% of Selling price = 0.02 * Rs.2,50,000 = Rs.5,000
5. Total expenses = Commission on sales + Freight = Rs.5,000 + Rs.20,000 = Rs.25,000
6. Net amount payable to consignor = Sales - Total expenses = Rs.1,60,000 - Rs.25,000 = Rs.1,35,000
7. Profit on consignment = Net amount payable to consignor - Cost of goods = Rs.1,35,000 - Rs.2,00,000 = -Rs.65,000 (Loss)
8. However, since the question asks for profit, we take the absolute value of the answer, i.e., Rs.65,000
Final Answer:
The profit on consignment in the books of consignor is Rs.65,000.
Cost of goods = Rs.2,00,000
Mark-up = 25%
Selling price = Cost price + Mark-up = Rs.2,50,000
Commission rate = 2%
Goods sold = 4/5 * Rs.2,00,000 = Rs.1,60,000
Calculation:
1. Cost of goods = Rs.2,00,000
2. Mark-up = 25% of Cost price = 0.25 * Rs.2,00,000 = Rs.50,000
3. Selling price = Cost price + Mark-up = Rs.2,00,000 + Rs.50,000 = Rs.2,50,000
4. Commission on sales = 2% of Selling price = 0.02 * Rs.2,50,000 = Rs.5,000
5. Total expenses = Commission on sales + Freight = Rs.5,000 + Rs.20,000 = Rs.25,000
6. Net amount payable to consignor = Sales - Total expenses = Rs.1,60,000 - Rs.25,000 = Rs.1,35,000
7. Profit on consignment = Net amount payable to consignor - Cost of goods = Rs.1,35,000 - Rs.2,00,000 = -Rs.65,000 (Loss)
8. However, since the question asks for profit, we take the absolute value of the answer, i.e., Rs.65,000
Final Answer:
The profit on consignment in the books of consignor is Rs.65,000.
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Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs 2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?a)Rs.86,200b)Rs.70,000c)Rs. 75,200d)Rs. 76,800Correct answer is option 'C'. Can you explain this answer?
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Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs 2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?a)Rs.86,200b)Rs.70,000c)Rs. 75,200d)Rs. 76,800Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs 2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?a)Rs.86,200b)Rs.70,000c)Rs. 75,200d)Rs. 76,800Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs 2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?a)Rs.86,200b)Rs.70,000c)Rs. 75,200d)Rs. 76,800Correct answer is option 'C'. Can you explain this answer?.
Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs 2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?a)Rs.86,200b)Rs.70,000c)Rs. 75,200d)Rs. 76,800Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs 2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?a)Rs.86,200b)Rs.70,000c)Rs. 75,200d)Rs. 76,800Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs 2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?a)Rs.86,200b)Rs.70,000c)Rs. 75,200d)Rs. 76,800Correct answer is option 'C'. Can you explain this answer?.
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