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Max limited supplies goods to its New Delhi branch at cost plus 25% age stock of good at branch invoice price 3000 good supplied at invoice price 24000 remittance from the branch 25000 cash paid by head office for salaries and wages and 900 rent and rates 600 sundry expenses from the branch 2000 returns from the branch invoice price 150 stock of goods 8000?
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Max limited supplies goods to its New Delhi branch at cost plus 25% ag...
Introduction:
In this scenario, Max Limited is a company that supplies goods to its New Delhi branch. The branch receives the goods at cost plus 25% markup. The branch then sells the goods at the invoice price and remits the proceeds back to the head office. There are also various expenses incurred by both the branch and the head office.

Explanation:

Goods supplied:
- Max Limited supplies goods to its New Delhi branch at cost plus 25% markup.
- The invoice price of the goods supplied is Rs. 24,000.
- The cost of the goods can be calculated by dividing the invoice price by 1 plus the markup percentage.
- Cost of goods = Rs. 24,000 / (1 + 0.25) = Rs. 19,200.

Remittance from the branch:
- The branch remits Rs. 25,000 back to the head office.
- This represents the sales proceeds from the goods sold by the branch.

Expenses paid by the head office:
- The head office pays Rs. 900 for salaries and wages.
- The head office also pays Rs. 600 for rent and rates.

Sundry expenses from the branch:
- The branch incurs Rs. 2,000 in sundry expenses.
- These expenses could include miscellaneous costs such as maintenance, repairs, or office supplies.

Returns from the branch:
- The branch returns goods to the head office with an invoice price of Rs. 150.
- The head office deducts the value of these returns from the branch's account.

Stock of goods:
- The branch has a stock of goods with a value of Rs. 8,000.
- This represents the value of the remaining goods that have not been sold by the branch.

Overall, this scenario highlights the sales and expenses related to the New Delhi branch of Max Limited. The branch sells goods supplied by the head office, remits the sales proceeds, incurs sundry expenses, and returns goods if necessary. The head office pays for salaries, wages, rent, and rates. The stock of goods represents the value of the remaining inventory held by the branch.
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Direction: Read the following passage and answer the questions that follows:More specifically, a price ceiling (in other words, a maximum pric e) is put into effect when the government believes the price is too high and sets a maximum price that producers can charge; this price must lie below the equilibrium price in order for the price ceiling to have an effect.The price ceiling is usually instituted via law and is typically applied to necessary goods like food, rent, and energy sources in order to ensure that everyone has access to them.Benefits and Downsides:Price ceilings are beneficial to society, and are often necessary, in that they make sure that essential goods are financially accessible to the average person, at least in the short run. By lowering costs, price ceilings also have the beneficial effect of helping to stimulate demand, which can contribute to the health of an economy.However, there can also be downsides to price ceilings. While they stimulate demand, price ceilings can also cause shortages. Where the ceiling is set, there is more demand than at the equilibrium price. This means that the amount of the good or service supplied is less than the quantity demanded.For example, in agriculture, medicine, and education, many governments set maximum prices to make the needed goods or services more affordable. Producers may respond to such an economic situation by rationing supplies, decreasing production levels or lowering the quality of production, making the consumer pay extra for otherwise free elements of the good (features, options, etc.), and more.Q. How do the producers respond to the situation of price ceiling?

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Max limited supplies goods to its New Delhi branch at cost plus 25% age stock of good at branch invoice price 3000 good supplied at invoice price 24000 remittance from the branch 25000 cash paid by head office for salaries and wages and 900 rent and rates 600 sundry expenses from the branch 2000 returns from the branch invoice price 150 stock of goods 8000?
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Max limited supplies goods to its New Delhi branch at cost plus 25% age stock of good at branch invoice price 3000 good supplied at invoice price 24000 remittance from the branch 25000 cash paid by head office for salaries and wages and 900 rent and rates 600 sundry expenses from the branch 2000 returns from the branch invoice price 150 stock of goods 8000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Max limited supplies goods to its New Delhi branch at cost plus 25% age stock of good at branch invoice price 3000 good supplied at invoice price 24000 remittance from the branch 25000 cash paid by head office for salaries and wages and 900 rent and rates 600 sundry expenses from the branch 2000 returns from the branch invoice price 150 stock of goods 8000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Max limited supplies goods to its New Delhi branch at cost plus 25% age stock of good at branch invoice price 3000 good supplied at invoice price 24000 remittance from the branch 25000 cash paid by head office for salaries and wages and 900 rent and rates 600 sundry expenses from the branch 2000 returns from the branch invoice price 150 stock of goods 8000?.
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