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Company sends 3,000 bales of cotton to its consignee Modi G at a profit of 25% on I.P. The cost price of each bale to the company is `1,500. The following are the expenses incurred in connection with the consignment. 1,20,000 paid by the consignor fordespatching of the goods. 1,50,000 paid by way of octroi duty by the consignee.300 bales were lost in transit and insurance company admitted the claim of 80% 1/4th of remaining stock destroyed in the godown.?
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Company sends 3,000 bales of cotton to its consignee Modi G at a profi...
Solution:

The given problem can be solved by calculating the cost, selling price, and profit of the consignment. We will also need to consider the expenses incurred by the consignor and consignee, as well as the losses in transit and in the godown.

1. Cost, Selling Price, and Profit:
- Cost price of each bale to the company = `1,500
- Number of bales sent = 3,000
- Cost of the consignment to the company = 3,000 x 1,500 = `45,00,000
- Profit on I.P. = 25% of I.P.
- Selling Price (S.P.) = Cost Price (C.P.) + Profit
- S.P. = 45,00,000 + (25/100) x 45,00,000 = `56,25,000

2. Expenses Incurred:
- Despatching Expenses = `1,20,000
- Octroi Duty = `1,50,000

3. Losses in Transit:
- Number of bales lost = 300
- Insurance claim admitted = 80% of the remaining stock
- Remaining stock = 3,000 - 300 = 2,700
- Insurance claim admitted = 80/100 x 2,700 = 2,160 bales

4. Losses in the Godown:
- 1/4th of the remaining stock destroyed
- Destroyed stock = 1/4 x 2,700 = 675 bales

5. Calculation of Net Profit:
- Net Profit = Selling Price - (Cost Price + Expenses Incurred - Insurance Claim + Losses in Godown)
- Net Profit = 56,25,000 - (45,00,000 + 1,20,000 + 1,50,000 - 2,160 x 1,500 + 675 x 1,500)
- Net Profit = 56,25,000 - (45,00,000 + 1,20,000 + 1,50,000 - 32,40,000 + 10,12,500)
- Net Profit = 56,25,000 - 23,22,500
- Net Profit = `33,02,500

Therefore, the net profit earned by the company on the consignment is `33,02,500.
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Company sends 3,000 bales of cotton to its consignee Modi G at a profit of 25% on I.P. The cost price of each bale to the company is `1,500. The following are the expenses incurred in connection with the consignment. 1,20,000 paid by the consignor fordespatching of the goods. 1,50,000 paid by way of octroi duty by the consignee.300 bales were lost in transit and insurance company admitted the claim of 80% 1/4th of remaining stock destroyed in the godown.?
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Company sends 3,000 bales of cotton to its consignee Modi G at a profit of 25% on I.P. The cost price of each bale to the company is `1,500. The following are the expenses incurred in connection with the consignment. 1,20,000 paid by the consignor fordespatching of the goods. 1,50,000 paid by way of octroi duty by the consignee.300 bales were lost in transit and insurance company admitted the claim of 80% 1/4th of remaining stock destroyed in the godown.? 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 Company sends 3,000 bales of cotton to its consignee Modi G at a profit of 25% on I.P. The cost price of each bale to the company is `1,500. The following are the expenses incurred in connection with the consignment. 1,20,000 paid by the consignor fordespatching of the goods. 1,50,000 paid by way of octroi duty by the consignee.300 bales were lost in transit and insurance company admitted the claim of 80% 1/4th of remaining stock destroyed in the godown.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Company sends 3,000 bales of cotton to its consignee Modi G at a profit of 25% on I.P. The cost price of each bale to the company is `1,500. The following are the expenses incurred in connection with the consignment. 1,20,000 paid by the consignor fordespatching of the goods. 1,50,000 paid by way of octroi duty by the consignee.300 bales were lost in transit and insurance company admitted the claim of 80% 1/4th of remaining stock destroyed in the godown.?.
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