CA Foundation Exam  >  CA Foundation Questions  >  Goods sent out on consignment 200000 consigno... Start Learning for Free
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?
Most Upvoted Answer
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.
Explore Courses for CA Foundation exam
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?
Question Description
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? 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 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? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
Solutions for 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? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of 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?, a detailed solution for 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? has been provided alongside types of 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? theory, EduRev gives you an ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev