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Goods sent out on consignment 200000 consignors expenses 5000 consignee's expenses 2000 cash sales 100000 credit sales 110000 consignment inventory is 40000 ordinary commission payable to consign hi 3000 rupees Del credere Commission 2000 rupees the amount in recoverable from customer 2000 what will be the profit on consignment?
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Goods sent out on consignment 200000 consignors expenses 5000 consigne...
Profit on Consignment

Introduction: In this question, we have been given certain details related to a consignment transaction. Our task is to calculate the profit on consignment.

Calculation of Profit on Consignment:
1. Calculation of Total Sales:
- Cash Sales = Rs. 100,000
- Credit Sales = Rs. 110,000
- Total Sales = Rs. 210,000

2. Calculation of Cost of Goods Sold:
- Consignment Inventory = Rs. 40,000
- Goods sent out on Consignment = Rs. 200,000
- Cost of Goods Sold = Rs. 240,000

3. Calculation of Gross Profit:
- Gross Profit = Total Sales - Cost of Goods Sold
- Gross Profit = Rs. (210,000 - 240,000)
- Gross Profit = Rs. (-30,000)

4. Calculation of Expenses:
- Consignor's Expenses = Rs. 5,000
- Consignee's Expenses = Rs. 2,000
- Ordinary Commission Payable to Consignee = Rs. 3,000
- Del credere Commission = Rs. 2,000
- Total Expenses = Rs. 12,000

5. Calculation of Net Profit:
- Net Profit = Gross Profit - Expenses
- Net Profit = Rs. (-30,000 - 12,000)
- Net Profit = Rs. (-42,000)

Explanation:
The given details indicate that the consignment transaction has resulted in a loss of Rs. 42,000. This is because the cost of goods sold is higher than the total sales. In addition, the expenses incurred are also higher than the gross profit. Therefore, the net profit is negative.

Conclusion:
In conclusion, the calculation of profit on consignment requires the determination of total sales, cost of goods sold, gross profit, and expenses. Based on the given details, the consignment transaction has resulted in a loss of Rs. 42,000.
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Goods sent out on consignment 200000 consignors expenses 5000 consignee's expenses 2000 cash sales 100000 credit sales 110000 consignment inventory is 40000 ordinary commission payable to consign hi 3000 rupees Del credere Commission 2000 rupees the amount in recoverable from customer 2000 what will be the profit on consignment?
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