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Goods sent on consignment Rs 7,60,000. Opening consignment stock Rs 48,000. Cash sales Rs 7,00,000. Consignor’s expenses Rs 20,000. Consignee’s expenses Rs 12,000. Commission Rs 20,000. Closing consignment stock Rs 3,00,000. The profit on consignment is:
  • a)
    Rs.150,000
  • b)
    Rs.140,000
  • c)
    Rs.92,000
  • d)
    None
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Goods sent on consignment Rs 7,60,000. Opening consignment stock Rs 48...
Calculation of Profit on Consignment:

Opening stock = Rs. 48,000
Goods sent on consignment = Rs. 7,60,000
Total value of goods = Rs. 8,08,000

Less: Closing stock = Rs. 3,00,000

Value of goods sold = Rs. 5,08,000

Less: Consignor's expenses = Rs. 20,000
Consignee's expenses = Rs. 12,000
Commission = Rs. 20,000

Total expenses = Rs. 52,000

Net proceeds = Rs. 4,56,000

Less: Cash sales = Rs. 7,00,000

Net loss = Rs. 2,44,000

Since there is a loss on consignment, there is no profit.

Therefore, the correct answer is option 'D' (None).
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Community Answer
Goods sent on consignment Rs 7,60,000. Opening consignment stock Rs 48...
Closing Stock = Opening Stock + Inward Stock - COGS
300000 = 48000+760000 - ? (Check in Working Note)

Cash Sale = 700000
Gross Profit = Cash Sale - COGS
Gross Profit = 700000 - 508000
Gross Profit = 192000/-

Net Profit = Gross Profit - Expenses

= 192000-20000-12000-20000
*= 140000/-*

Working Note :
COGS
= Opening Stock + Inward Stock - Closing Stock
= 48000+760000-300000
= 508000/-
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Goods sent on consignment Rs 7,60,000. Opening consignment stock Rs 48,000. Cash sales Rs 7,00,000. Consignors expenses Rs 20,000. Consignees expenses Rs 12,000.Commission Rs 20,000. Closing consignment stock Rs 3,00,000. The profit on consignment is:a)Rs.150,000b)Rs.140,000c)Rs.92,000d)NoneCorrect answer is option 'B'. Can you explain this answer?
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Goods sent on consignment Rs 7,60,000. Opening consignment stock Rs 48,000. Cash sales Rs 7,00,000. Consignors expenses Rs 20,000. Consignees expenses Rs 12,000.Commission Rs 20,000. Closing consignment stock Rs 3,00,000. The profit on consignment is:a)Rs.150,000b)Rs.140,000c)Rs.92,000d)NoneCorrect answer is option 'B'. 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 Goods sent on consignment Rs 7,60,000. Opening consignment stock Rs 48,000. Cash sales Rs 7,00,000. Consignors expenses Rs 20,000. Consignees expenses Rs 12,000.Commission Rs 20,000. Closing consignment stock Rs 3,00,000. The profit on consignment is:a)Rs.150,000b)Rs.140,000c)Rs.92,000d)NoneCorrect answer is option 'B'. 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 Goods sent on consignment Rs 7,60,000. Opening consignment stock Rs 48,000. Cash sales Rs 7,00,000. Consignors expenses Rs 20,000. Consignees expenses Rs 12,000.Commission Rs 20,000. Closing consignment stock Rs 3,00,000. The profit on consignment is:a)Rs.150,000b)Rs.140,000c)Rs.92,000d)NoneCorrect answer is option 'B'. Can you explain this answer?.
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