1000 transistor each costing 80 were sent by A to B of Mumbai on consi...
Explanation:
Consignment Basis:
When goods are sent on consignment basis, the ownership of goods remains with the sender (consignor) until it is sold by the receiver (consignee). The consignee only acts as a selling agent and earns a commission on the sale of goods.
Freight:
Freight is the cost incurred for transporting goods from one place to another. In this case, A paid a freight amounting to 1000 for transporting 1000 transistors from A to B.
Cartage:
Cartage is the cost incurred for transporting goods from the place of arrival to the final destination. In this case, A paid a cartage amounting to 100 for transporting 1000 transistors from the place of arrival to the final destination.
Total Cost:
The total cost incurred by A for sending 1000 transistors on consignment basis is as follows:
- Cost of 1000 transistors = 1000 * 80 = 80,000
- Freight = 1000
- Cartage = 100
- Total Cost = 80,000 + 1000 + 100 = 81,100
Conclusion:
In conclusion, A has sent 1000 transistors on consignment basis to B of Mumbai. The ownership of goods remains with A until it is sold by B. A has paid a freight amounting to 1000 and cartage 100 for transporting the goods. The total cost incurred by A for sending 1000 transistors on consignment basis is 81,100.