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A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at?
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A of allahabad sent goods worth rs 240000 to D of Delhi on consignment...
Valuation of Abnormal Loss in Consignment Account
In a consignment arrangement, the consignor sends goods to the consignee for selling on his behalf. The consignee sells the goods and remits the proceeds to the consignor after deducting certain expenses. In this case, A of Allahabad sent goods worth Rs 240,000 to D of Delhi on a consignment basis. However, during the transportation, loading, and unloading process, goods worth Rs 48,000 were damaged, which is considered as abnormal loss.
To calculate the value of abnormal loss, we need to consider the cost of the damaged goods. Since the abnormal loss is not a normal occurrence, it is treated separately in the consignment account.
Given:
Value of goods sent on consignment = Rs 240,000
Cost of loading and transportation = Rs 4,800
Value of goods damaged = Rs 48,000
To calculate the abnormal loss, we deduct the value of the damaged goods from the cost of goods sent on consignment:
Abnormal Loss = Value of goods damaged
= Rs 48,000
The abnormal loss is recorded in the consignment account as an expense. It is deducted from the value of goods sent on consignment to determine the net value of goods sold.
Consignment Account (extract):
| Particulars | Amount (Rs) |
|-----------------------|-------------|
| Goods sent on consignment | 240,000 |
| Less: Abnormal loss | 48,000 |
| | |
| Net value of goods sold | 192,000 |
The consignee sells 80% of the remaining goods at a 20% markup on the cost price. To calculate the proceeds and profit, we need to determine the cost price of the goods sold.
Cost of goods sold = Net value of goods sold
= Rs 192,000
Selling price of goods sold = Cost price + Markup
= Rs 192,000 + (20/100) * Rs 192,000
= Rs 230,400
Proceeds from the sale = Selling price of goods sold * Quantity sold
= Rs 230,400 * 80%
= Rs 184,320
Profit on consignment = Proceeds from the sale - Cost of goods sold
= Rs 184,320 - Rs 192,000
= -Rs 7,680 (Loss)
The abnormal loss in this consignment will be valued at Rs 48,000. It is deducted from the value of goods sent on consignment to determine the net value of goods sold. The consignee then sells 80% of the remaining goods at a 20% markup on the cost price, resulting in a loss of Rs 7,680 on the consignment.
Introduction
In a consignment arrangement, the consignor sends goods to the consignee for selling on his behalf. The consignee sells the goods and remits the proceeds to the consignor after deducting certain expenses. In this case, A of Allahabad sent goods worth Rs 240,000 to D of Delhi on a consignment basis. However, during the transportation, loading, and unloading process, goods worth Rs 48,000 were damaged, which is considered as abnormal loss.
Calculation of Abnormal Loss
To calculate the value of abnormal loss, we need to consider the cost of the damaged goods. Since the abnormal loss is not a normal occurrence, it is treated separately in the consignment account.
Given:
Value of goods sent on consignment = Rs 240,000
Cost of loading and transportation = Rs 4,800
Value of goods damaged = Rs 48,000
To calculate the abnormal loss, we deduct the value of the damaged goods from the cost of goods sent on consignment:
Abnormal Loss = Value of goods damaged
= Rs 48,000
Accounting Treatment
The abnormal loss is recorded in the consignment account as an expense. It is deducted from the value of goods sent on consignment to determine the net value of goods sold.
Consignment Account (extract):
| Particulars | Amount (Rs) |
|-----------------------|-------------|
| Goods sent on consignment | 240,000 |
| Less: Abnormal loss | 48,000 |
| | |
| Net value of goods sold | 192,000 |
Calculation of Proceeds and Profit
The consignee sells 80% of the remaining goods at a 20% markup on the cost price. To calculate the proceeds and profit, we need to determine the cost price of the goods sold.
Cost of goods sold = Net value of goods sold
= Rs 192,000
Selling price of goods sold = Cost price + Markup
= Rs 192,000 + (20/100) * Rs 192,000
= Rs 230,400
Proceeds from the sale = Selling price of goods sold * Quantity sold
= Rs 230,400 * 80%
= Rs 184,320
Profit on consignment = Proceeds from the sale - Cost of goods sold
= Rs 184,320 - Rs 192,000
= -Rs 7,680 (Loss)
Conclusion
The abnormal loss in this consignment will be valued at Rs 48,000. It is deducted from the value of goods sent on consignment to determine the net value of goods sold. The consignee then sells 80% of the remaining goods at a 20% markup on the cost price, resulting in a loss of Rs 7,680 on the consignment.
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A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at?
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A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at? 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 A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at?.
A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at? 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 A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at?.
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Here you can find the meaning of A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at? defined & explained in the simplest way possible. Besides giving the explanation of
A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at?, a detailed solution for A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at? has been provided alongside types of A of allahabad sent goods worth rs 240000 to D of Delhi on consignment basis. He incurred rs 4800 on loading and transportation of the goods. Goods worth rs 48000 were damaged during transportation, loading and unloading process,which was considered abnormal loss. The consignee sold 80% of the remaining goods at 20% above the cost price . The abnormal loss will be valued at? theory, EduRev gives you an
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