CA Foundation Exam  >  CA Foundation Questions  >  P Consigned 1,00,000 lb. of oil costing `2 pe... Start Learning for Free
P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?
Most Upvoted Answer
P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price ...
Problem:
P consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On the way, 500 lb. of oil was spoiled due to leakage. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realized over invoice price. 5,000 lbs were destroyed in the godown and nothing is realized from the insurer. Explain in detail.

Solution:

1. Cost of Consignment:
- Quantity of oil consigned = 1,00,000 lb.
- Cost per lb. of oil = `2
- Total cost of consignment = Quantity of oil consigned * Cost per lb.
= 1,00,000 lb. * `2
= `2,00,000

2. Cartage Expenses:
- Cost per lb. for cartage = Re. 0.25
- Total cartage expenses = Quantity of oil consigned * Cost per lb. for cartage
= 1,00,000 lb. * Re. 0.25
= `25,000

3. Leakage Loss:
- Quantity of oil spoiled due to leakage = 500 lb.
- Cost per lb. of oil = `2
- Total loss due to leakage = Quantity of oil spoiled * Cost per lb.
= 500 lb. * `2
= `1,000

4. Total Cost:
- Total cost = Cost of consignment + Cartage expenses + Loss due to leakage
= `2,00,000 + `25,000 + `1,000
= `2,26,000

5. Sales:
- Quantity of oil sold = 90,000 lb.
- Selling price per lb. of oil = `4
- Total sales = Quantity of oil sold * Selling price per lb.
= 90,000 lb. * `4
= `3,60,000

6. Advertisement Expenses:
- Advertisement expenses = `12,500

7. Commission:
- Commission on total sales = 5% of total sales
= 5% of `3,60,000
= `18,000
- Surplus realized over invoice price = Total sales - Total cost
= `3,60,000 - `2,26,000
= `1,34,000
- Commission on surplus realized = 30% of surplus realized
= 30% of `1,34,000
= `40,200
- Total commission = Commission on total sales + Commission on surplus realized
= `18,000 + `40,200
= `58,200

8. Loss in Godown:
- Quantity of oil destroyed in godown = 5,000 lb.
- Total loss = Quantity of oil destroyed * Cost per lb.
= 5,000 lb.
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?
Question Description
P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? 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 P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?.
Solutions for P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? 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 P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? defined & explained in the simplest way possible. Besides giving the explanation of P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?, a detailed solution for P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? has been provided alongside types of P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? theory, EduRev gives you an ample number of questions to practice P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. 5,480 on cartage for sending it to his agent T at Madras. On way 500 lb. of oil was spoilt due to leakage which was very normal and common. T sold 90,000 lb. at 4 per lb. He spent `12,500 on advertisement. T is entitled to a commission of 5% on total sales and 30% of surplus realised over I.P. 5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? 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