CA Foundation Exam  >  CA Foundation Questions  >  Y Ltd. sends out its goods Rs. 1,20,000 to on... Start Learning for Free
Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000?
Most Upvoted Answer
Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale o...
Solution:

Calculation of Cost Price of Goods:

Total goods sent on Sale or Return basis = Rs. 1,20,000
Approval received = Rs. 80,000

Hence, the value of unapproved goods = Rs. 1,20,000 - Rs. 80,000 = Rs. 40,000

Now, Y Ltd. charges 25% profit on cost. Therefore, the cost price of the unapproved goods with the dealer will be calculated as follows:

Profit percentage = 25%
Cost price = ?
Selling price = Rs. 40,000

Let the cost price be ‘x’
25% of x = Selling price - Cost price
25% of x = Rs. 40,000 - x
25% of x + x = Rs. 40,000
1.25x = Rs. 40,000
x = Rs. 32,000

Therefore, the cost price of the unapproved goods with the dealer will be Rs. 32,000.

Answer: (a) Rs.32,000

Explanation:

Y Ltd. sent goods worth Rs. 1,20,000 to the dealer on Sale or Return basis. Later, an approval letter was received for goods worth Rs. 80,000. So, the value of unapproved goods was Rs. 40,000. Y Ltd. charges 25% profit on cost. Hence, the cost price of the unapproved goods was calculated by using the above formula. After calculation, it was found that the cost price of the unapproved goods with the dealer was Rs. 32,000. Therefore, option (a) is the correct answer.
Explore Courses for CA Foundation exam
Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000?
Question Description
Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000? 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 Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000?.
Solutions for Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000? 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 Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000? defined & explained in the simplest way possible. Besides giving the explanation of Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000?, a detailed solution for Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000? has been provided alongside types of Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000? theory, EduRev gives you an ample number of questions to practice Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31 st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the un-approved goods with the dealer will be (a) Rs.32,000 (b) Rs.40,000 (c) Rs.80,000 (d) Rs. 64,000? 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