Calculation of Cost of Goods Sold

- Cost of goods sold = cost of goods sent + consignor expenses
- Cost of goods sold = rupees 200000 + rupees 5000
- Cost of goods sold = rupees 205000

Calculation of Selling Price

- Selling price = cost price + 20% of cost price
- Selling price = rupees 200000 + (20/100)*rupees 200000
- Selling price = rupees 240000

Calculation of Sales Revenue

- Sales revenue = selling price * 4/5th of goods sold
- Sales revenue = rupees 240000 * 4/5
- Sales revenue = rupees 192000

Calculation of Gross Profit

- Gross profit = sales revenue - cost of goods sold - consignee's expenses
- Gross profit = rupees 192000 - rupees 205000 - rupees 3000
- Gross profit = -rupees 13000 (Negative profit)

Calculation of Net Profit

- Net profit = gross profit - consignor expenses
- Net profit = -rupees 13000 - rupees 5000
- Net profit = -rupees 18000 (Further negative profit)

Explanation

The given problem is related to consignment sales. X sent goods costing rupees 200000 to Y, and the consignor expenses incurred were rupees 5000. The consignee's expenses were also mentioned in the problem, which were rupees 3000.

The selling price of goods was calculated by adding 20% to the cost price, which amounted to rupees 240000. Further, 4/5th of goods were sold at this price, which resulted in sales revenue of rupees 192000.

The gross profit was calculated by deducting the cost of goods sold and consignee's expenses from the sales revenue. The result was a negative profit of rupees 13000, which meant that the consignment incurred a loss.

To calculate the net profit, the consignor expenses were also deducted from the gross profit, resulting in a further negative profit of rupees 18000.

Therefore, the answer given as rupees 25000 is incorrect. The correct answer is a loss of rupees 18000.

Costing rupees 200000.sold at 20%.multiply 200000*20%= 40000-expenses 5000= 35000*4/5= 28000-consignees expenses 3000= 25000. answer is 25000.