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Question Ravi consigned goods to Suraj costing Rs. 100000. The Proforma invoice was made to show a profit of 25% on cost. Ravi paid freight, insurance Rs. 2000. Suraj sold part of consignmen t for Rs. 88000 at a uniform price of 10% over invoice price and spent Rs. 3000 as warehousing charges, Rs. 10 no?
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Question Ravi consigned goods to Suraj costing Rs. 100000. The Proform...
Calculation of Profit on Cost


  • Cost of goods consigned by Ravi to Suraj = Rs. 100000

  • Proforma invoice made to show a profit of 25% on cost

  • Profit on cost = 25% of Rs. 100000 = Rs. 25000

  • Invoice price = Cost price + Profit on cost = Rs. 100000 + Rs. 25000 = Rs. 125000



Expenses Incurred by Ravi


  • Ravi paid freight and insurance charges of Rs. 2000



Sales and Expenses Incurred by Suraj


  • Suraj sold part of the consignment for Rs. 88000

  • Selling price = 10% over the invoice price = 110% of Rs. 125000 = Rs. 137500

  • Profit on sale = Selling price - Cost price = Rs. 137500 - Rs. 100000 = Rs. 37500

  • Suraj spent Rs. 3000 as warehousing charges



Calculation of Suraj's Commission


  • Suraj's commission = 10% of profit on sale = 10% of Rs. 37500 = Rs. 3750



Calculation of Ravi's Net Profit/Loss


  • Ravi's actual profit = Profit on cost - Freight and insurance charges = Rs. 25000 - Rs. 2000 = Rs. 23000

  • Ravi's net profit/loss = Actual profit - Suraj's commission - Warehousing charges = Rs. 23000 - Rs. 3750 - Rs. 3000 = Rs. 16250



Conclusion


  • Ravi consigned goods to Suraj with a cost of Rs. 100000

  • Proforma invoice was made to show a profit of 25% on cost, resulting in an invoice price of Rs. 125000

  • Ravi paid freight and insurance charges of Rs. 2000

  • Suraj sold part of the consignment for Rs. 88000, with a selling price of Rs. 137500 and a profit on sale of Rs. 37500

  • Suraj incurred warehousing charges of Rs. 3000

  • Suraj's commission on the sale was Rs. 3750

  • Ravi's net profit after deducting expenses and Suraj's commission was Rs. 16250

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Question Ravi consigned goods to Suraj costing Rs. 100000. The Proforma invoice was made to show a profit of 25% on cost. Ravi paid freight, insurance Rs. 2000. Suraj sold part of consignmen t for Rs. 88000 at a uniform price of 10% over invoice price and spent Rs. 3000 as warehousing charges, Rs. 10 no?
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Question Ravi consigned goods to Suraj costing Rs. 100000. The Proforma invoice was made to show a profit of 25% on cost. Ravi paid freight, insurance Rs. 2000. Suraj sold part of consignmen t for Rs. 88000 at a uniform price of 10% over invoice price and spent Rs. 3000 as warehousing charges, Rs. 10 no? 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 Question Ravi consigned goods to Suraj costing Rs. 100000. The Proforma invoice was made to show a profit of 25% on cost. Ravi paid freight, insurance Rs. 2000. Suraj sold part of consignmen t for Rs. 88000 at a uniform price of 10% over invoice price and spent Rs. 3000 as warehousing charges, Rs. 10 no? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Question Ravi consigned goods to Suraj costing Rs. 100000. The Proforma invoice was made to show a profit of 25% on cost. Ravi paid freight, insurance Rs. 2000. Suraj sold part of consignmen t for Rs. 88000 at a uniform price of 10% over invoice price and spent Rs. 3000 as warehousing charges, Rs. 10 no?.
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