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Max Chemical Works consigned 700 boxes of medicines to Raja Medical Store Ip of 168000 which was 20% above the actual cost price and paid 14000 for Insurance and freight. the course of transit, 50 boxes were lost and the transporter paid 22000 for the loss. The Consignee took the delivery of the remaining boxes and incurred 9750 for carriage The Consignee sold 500 boxes for 160000 and incurred t 6000 for selling expenses. The Consignee is entitled to a commission of 6% on gross sales.?
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Max Chemical Works consigned 700 boxes of medicines to Raja Medical St...
Calculation of Cost Price

- Consignment of 700 boxes of medicines was sold for Rs. 168,000 which was 20% above the actual cost price.
- Therefore, the actual cost price of 700 boxes of medicines = 168000/1.20 = Rs. 140,000

Calculation of Expenses

- Insurance and freight paid by Max Chemical Works = Rs. 14,000
- Loss of 50 boxes during transit and the transporter paid Rs. 22,000 for the loss
- Carriage incurred by the Consignee for the remaining boxes = Rs. 9,750
- Selling expenses incurred by the Consignee = Rs. 6,000

Calculation of Sales

- Out of the 700 boxes, only 650 boxes were received by the Consignee (700-50).
- The Consignee sold 500 boxes for Rs. 160,000.
- Therefore, the selling price of one box = 160000/500 = Rs. 320

Calculation of Commission

- The Consignee is entitled to a commission of 6% on gross sales.
- Therefore, commission earned by the Consignee = 6% of Rs. 160,000 = Rs. 9,600

Calculation of Profit or Loss

- Total expenses incurred = Rs. 14,000 + Rs. 22,000 + Rs. 9,750 + Rs. 6,000 = Rs. 51,750
- Total sales = Rs. 160,000
- Total commission earned = Rs. 9,600
- Total cost price = Rs. 140,000
- Therefore, profit or loss = Total sales - (Total expenses + Total commission + Total cost price)
- = Rs. 160,000 - (Rs. 51,750 + Rs. 9,600 + Rs. 140,000)
- = Rs. -41,350 (Loss)

Conclusion

Max Chemical Works incurred a loss of Rs. 41,350 in this consignment.
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Max Chemical Works consigned 700 boxes of medicines to Raja Medical Store Ip of 168000 which was 20% above the actual cost price and paid 14000 for Insurance and freight. the course of transit, 50 boxes were lost and the transporter paid 22000 for the loss. The Consignee took the delivery of the remaining boxes and incurred 9750 for carriage The Consignee sold 500 boxes for 160000 and incurred t 6000 for selling expenses. The Consignee is entitled to a commission of 6% on gross sales.?
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Max Chemical Works consigned 700 boxes of medicines to Raja Medical Store Ip of 168000 which was 20% above the actual cost price and paid 14000 for Insurance and freight. the course of transit, 50 boxes were lost and the transporter paid 22000 for the loss. The Consignee took the delivery of the remaining boxes and incurred 9750 for carriage The Consignee sold 500 boxes for 160000 and incurred t 6000 for selling expenses. The Consignee is entitled to a commission of 6% on gross sales.? 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 Max Chemical Works consigned 700 boxes of medicines to Raja Medical Store Ip of 168000 which was 20% above the actual cost price and paid 14000 for Insurance and freight. the course of transit, 50 boxes were lost and the transporter paid 22000 for the loss. The Consignee took the delivery of the remaining boxes and incurred 9750 for carriage The Consignee sold 500 boxes for 160000 and incurred t 6000 for selling expenses. The Consignee is entitled to a commission of 6% on gross sales.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Max Chemical Works consigned 700 boxes of medicines to Raja Medical Store Ip of 168000 which was 20% above the actual cost price and paid 14000 for Insurance and freight. the course of transit, 50 boxes were lost and the transporter paid 22000 for the loss. The Consignee took the delivery of the remaining boxes and incurred 9750 for carriage The Consignee sold 500 boxes for 160000 and incurred t 6000 for selling expenses. The Consignee is entitled to a commission of 6% on gross sales.?.
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