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Mr. X paid commission to his consignee Mr. Y Rs. 25,000 @ 5% on sales made by him. Goods were sold by Mr. Y at a profit of 25% on cost. Stock in hand as on 31.3.2016 is Rs. 50,000 at cost. What is the cost of goods sent by Mr. X on consignment to Mr. Y? (a) Rs. 4,50,000 (b) Rs. 75,000 (c) Rs. 5,50,000 (d) Rs. 6,00,000.?
Most Upvoted Answer
Mr. X paid commission to his consignee Mr. Y Rs. 25,000 @ 5% on sales ...
Solution:

Given, commission paid by Mr. X to Mr. Y = Rs. 25,000 @ 5% = Rs. 1,25,000
Profit earned by Mr. Y on sales = 25%
Therefore, cost of goods sold by Mr. Y = 100/125 * cost price = 4/5 * cost price
Let the cost of goods sent by Mr. X be Rs. x
Total sales made by Mr. Y = x + 4/5 * x = 9/5 * x
Commission paid to Mr. Y = 5% of 9/5 * x = 9x/100
According to the question, commission paid = Rs. 1,25,000
Therefore, 9x/100 = 1,25,000
x = Rs. 13,88,888.88
Therefore, the cost of goods sent by Mr. X on consignment to Mr. Y is Rs. 13,88,888.88.

Answer: (d) Rs. 6,00,000.
Community Answer
Mr. X paid commission to his consignee Mr. Y Rs. 25,000 @ 5% on sales ...
Since, commission is 5% of sale value ie. 25000
So the sale value = 25000* 100/5 = 500000
Now, Mr. Y sold goods at profit of 25% on cost 
Therefore cost price = 500000 *100/125 =400000 .
 The stock in 
hand is ₹50000 at cost 
Hence, Mr x sent goods costing ₹450000 to Mr y on consignment .
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Mr. X paid commission to his consignee Mr. Y Rs. 25,000 @ 5% on sales made by him. Goods were sold by Mr. Y at a profit of 25% on cost. Stock in hand as on 31.3.2016 is Rs. 50,000 at cost. What is the cost of goods sent by Mr. X on consignment to Mr. Y? (a) Rs. 4,50,000 (b) Rs. 75,000 (c) Rs. 5,50,000 (d) Rs. 6,00,000.?
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Mr. X paid commission to his consignee Mr. Y Rs. 25,000 @ 5% on sales made by him. Goods were sold by Mr. Y at a profit of 25% on cost. Stock in hand as on 31.3.2016 is Rs. 50,000 at cost. What is the cost of goods sent by Mr. X on consignment to Mr. Y? (a) Rs. 4,50,000 (b) Rs. 75,000 (c) Rs. 5,50,000 (d) Rs. 6,00,000.? 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 Mr. X paid commission to his consignee Mr. Y Rs. 25,000 @ 5% on sales made by him. Goods were sold by Mr. Y at a profit of 25% on cost. Stock in hand as on 31.3.2016 is Rs. 50,000 at cost. What is the cost of goods sent by Mr. X on consignment to Mr. Y? (a) Rs. 4,50,000 (b) Rs. 75,000 (c) Rs. 5,50,000 (d) Rs. 6,00,000.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. X paid commission to his consignee Mr. Y Rs. 25,000 @ 5% on sales made by him. Goods were sold by Mr. Y at a profit of 25% on cost. Stock in hand as on 31.3.2016 is Rs. 50,000 at cost. What is the cost of goods sent by Mr. X on consignment to Mr. Y? (a) Rs. 4,50,000 (b) Rs. 75,000 (c) Rs. 5,50,000 (d) Rs. 6,00,000.?.
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