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Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be -
? Related: Unit 3: Consignment
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Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Git...
Consignment
A consignment refers to a business arrangement in which a person (consignor) sends goods to another person (consignee) who sells them on behalf of the consignor. The consignee receives a commission on the sales made and returns the unsold goods to the consignor.
Calculation of Consignment Profit
To calculate the consignment profit, we need to consider the following:
1. Cost of goods sold (COGS): It is the cost incurred by the consignor to produce the goods.
COGS = Number of radio sets sold x Cost per radio set
COGS = 750 x Rs. 900
COGS = Rs. 6,75,000
2. Direct expenses: These are the expenses incurred by the consignor to send the goods to the consignee.
Direct expenses = Carriage + Freight + Insurance
Direct expenses = Rs. 650 + Rs. 7,000 + Rs. 3,250
Direct expenses = Rs. 10,900
3. Indirect expenses: These are the expenses incurred by the consignee to sell the goods on behalf of the consignor.
Indirect expenses = Miss Gita's expenses + Insurance claim - Commission
Indirect expenses = Rs. 13,000 + Rs. 35,000 - (6% of Rs. 9,00,000)
Indirect expenses = Rs. 13,000 + Rs. 35,000 - Rs. 54,000
Indirect expenses = Rs. - 6,000 (negative)
4. Value of unsold goods: It is the value of the radio sets that were not sold by the consignee.
Value of unsold goods = Number of unsold radio sets x Cost per radio set
Value of unsold goods = (1,000 - 750) x Rs. 900
Value of unsold goods = Rs. 2,25,000
5. Consignment stock: It is the value of the goods remaining with the consignee.
Consignment stock = Value of sold goods + Value of unsold goods
Consignment stock = Rs. 6,75,000 + Rs. 2,25,000
Consignment stock = Rs. 9,00,000
6. Consignment profit: It is the profit earned by the consignor on the consignment.
Consignment profit = Value of sold goods - COGS - Direct expenses - Indirect expenses
Consignment profit = Rs. 9,00,000 - Rs. 6,75,000 - Rs. 10,900 - Rs. (-6,000)
Consignment profit = Rs. 1,84,391
Therefore, the consignment profit is Rs. 1,84,391.
A consignment refers to a business arrangement in which a person (consignor) sends goods to another person (consignee) who sells them on behalf of the consignor. The consignee receives a commission on the sales made and returns the unsold goods to the consignor.
Calculation of Consignment Profit
To calculate the consignment profit, we need to consider the following:
1. Cost of goods sold (COGS): It is the cost incurred by the consignor to produce the goods.
COGS = Number of radio sets sold x Cost per radio set
COGS = 750 x Rs. 900
COGS = Rs. 6,75,000
2. Direct expenses: These are the expenses incurred by the consignor to send the goods to the consignee.
Direct expenses = Carriage + Freight + Insurance
Direct expenses = Rs. 650 + Rs. 7,000 + Rs. 3,250
Direct expenses = Rs. 10,900
3. Indirect expenses: These are the expenses incurred by the consignee to sell the goods on behalf of the consignor.
Indirect expenses = Miss Gita's expenses + Insurance claim - Commission
Indirect expenses = Rs. 13,000 + Rs. 35,000 - (6% of Rs. 9,00,000)
Indirect expenses = Rs. 13,000 + Rs. 35,000 - Rs. 54,000
Indirect expenses = Rs. - 6,000 (negative)
4. Value of unsold goods: It is the value of the radio sets that were not sold by the consignee.
Value of unsold goods = Number of unsold radio sets x Cost per radio set
Value of unsold goods = (1,000 - 750) x Rs. 900
Value of unsold goods = Rs. 2,25,000
5. Consignment stock: It is the value of the goods remaining with the consignee.
Consignment stock = Value of sold goods + Value of unsold goods
Consignment stock = Rs. 6,75,000 + Rs. 2,25,000
Consignment stock = Rs. 9,00,000
6. Consignment profit: It is the profit earned by the consignor on the consignment.
Consignment profit = Value of sold goods - COGS - Direct expenses - Indirect expenses
Consignment profit = Rs. 9,00,000 - Rs. 6,75,000 - Rs. 10,900 - Rs. (-6,000)
Consignment profit = Rs. 1,84,391
Therefore, the consignment profit is Rs. 1,84,391.
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Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Git...
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Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment?
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Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment?.
Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment?.
Solutions for Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? in English & in Hindi are available as part of our courses for CA CPT.
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Here you can find the meaning of Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? defined & explained in the simplest way possible. Besides giving the explanation of
Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment?, a detailed solution for Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? has been provided alongside types of Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? theory, EduRev gives you an
ample number of questions to practice Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on July 1, 2006. Miss Rakhi incurred the following expenses. Carriage- Rs. 650 Freight- Rs. 7,000 Insurance- Rs. 3,250 Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9, 00,000 and Miss Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company admitted claim of Rs. 35,000. Consignment stock was valued Rs. 1,84,391. Consignment Profit will be - Related: Unit 3: Consignment? tests, examples and also practice CA CPT tests.
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