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Can you explain the answer of this question below:
Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of stock reserve on consignment stock will be:
- A:Rs.4500
- B:Rs.9000
- C:Rs.11250
- D:None
The answer is c.
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Can you explain the answer of this question below:Ram of Kolkata sends...
Given information:
- Goods costing Rs. 100,000 sent by Ram of Kolkata to Y of Mumbai.
- The goods were sold at a 20% profit on invoice price.
- 1/10th of the goods were lost in transit.
- The remaining goods were sold.
To find:
- The amount of stock reserve on consignment stock.
Solution:
1. Cost price of goods: Rs. 100,000
2. Profit on invoice price: 20%
3. Selling price of goods = Cost price + Profit
= Rs. 100,000 + 20% of Rs. 100,000
= Rs. 100,000 + Rs. 20,000
= Rs. 120,000
4. 1/10th of the goods were lost in transit.
Therefore, the remaining goods = 9/10th of Rs. 100,000
= Rs. 90,000
5. Of the remaining goods, some were sold.
Let's say x% of the remaining goods were sold.
Therefore, the amount of goods sold = x% of Rs. 90,000
= Rs. 900x/100
= Rs. 9x
6. The stock reserve on consignment stock is calculated as follows:
- Cost price of goods lost in transit = 1/10th of Rs. 100,000
= Rs. 10,000
- Cost price of unsold goods = Remaining goods - Goods sold
= Rs. 90,000 - Rs. 9x
= Rs. 90,000 - Rs. 900x/100
= Rs. (90,000 - 9x)
- Stock reserve = 10% of Cost price of goods lost in transit + 20% of Cost price of unsold goods
= 10% of Rs. 10,000 + 20% of (Rs. 90,000 - Rs. 9x)
= Rs. 1,000 + Rs. 18,000 - Rs. 1,8x
= Rs. 19,000 - Rs. 1.8x
7. To find the value of x, we can use the fact that all the goods were either lost, sold, or remaining.
Therefore, lost + sold + remaining = 100%
=> 1/10 + x% + (90 - 9x)% = 100%
=> 91% - 8x/10 = 100%
=> 8x/10 = 9%
=> x = 1.125
8. Substituting the value of x in the equation for stock reserve, we get:
Stock reserve = Rs. 19,000 - Rs. 1.8(1.125)
= Rs. 11,250
Therefore, the amount of stock reserve on consignment stock is Rs. 11,250, which is option (C).
- Goods costing Rs. 100,000 sent by Ram of Kolkata to Y of Mumbai.
- The goods were sold at a 20% profit on invoice price.
- 1/10th of the goods were lost in transit.
- The remaining goods were sold.
To find:
- The amount of stock reserve on consignment stock.
Solution:
1. Cost price of goods: Rs. 100,000
2. Profit on invoice price: 20%
3. Selling price of goods = Cost price + Profit
= Rs. 100,000 + 20% of Rs. 100,000
= Rs. 100,000 + Rs. 20,000
= Rs. 120,000
4. 1/10th of the goods were lost in transit.
Therefore, the remaining goods = 9/10th of Rs. 100,000
= Rs. 90,000
5. Of the remaining goods, some were sold.
Let's say x% of the remaining goods were sold.
Therefore, the amount of goods sold = x% of Rs. 90,000
= Rs. 900x/100
= Rs. 9x
6. The stock reserve on consignment stock is calculated as follows:
- Cost price of goods lost in transit = 1/10th of Rs. 100,000
= Rs. 10,000
- Cost price of unsold goods = Remaining goods - Goods sold
= Rs. 90,000 - Rs. 9x
= Rs. 90,000 - Rs. 900x/100
= Rs. (90,000 - 9x)
- Stock reserve = 10% of Cost price of goods lost in transit + 20% of Cost price of unsold goods
= 10% of Rs. 10,000 + 20% of (Rs. 90,000 - Rs. 9x)
= Rs. 1,000 + Rs. 18,000 - Rs. 1,8x
= Rs. 19,000 - Rs. 1.8x
7. To find the value of x, we can use the fact that all the goods were either lost, sold, or remaining.
Therefore, lost + sold + remaining = 100%
=> 1/10 + x% + (90 - 9x)% = 100%
=> 91% - 8x/10 = 100%
=> 8x/10 = 9%
=> x = 1.125
8. Substituting the value of x in the equation for stock reserve, we get:
Stock reserve = Rs. 19,000 - Rs. 1.8(1.125)
= Rs. 11,250
Therefore, the amount of stock reserve on consignment stock is Rs. 11,250, which is option (C).
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Community Answer
Can you explain the answer of this question below:Ram of Kolkata sends...
Invoice price = 150000 i.e. (100000×120÷80) .......... less 1/10 Lost in transit........ Then half of the remaining sold i.e. 135000/2......... then we get invoice value of stock 67500, On which 20% margin is included........ Then calculate the Margin loaded i.e. 67500×20÷120....... You will get answer as 11250
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Can you explain the answer of this question below:Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of stock reserve on consignment stock will be:A:Rs.4500B:Rs.9000C:Rs.11250D:NoneThe answer is c.
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Can you explain the answer of this question below:Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of stock reserve on consignment stock will be:A:Rs.4500B:Rs.9000C:Rs.11250D:NoneThe answer is c. 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 Can you explain the answer of this question below:Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of stock reserve on consignment stock will be:A:Rs.4500B:Rs.9000C:Rs.11250D:NoneThe answer is c. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of stock reserve on consignment stock will be:A:Rs.4500B:Rs.9000C:Rs.11250D:NoneThe answer is c..
Can you explain the answer of this question below:Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of stock reserve on consignment stock will be:A:Rs.4500B:Rs.9000C:Rs.11250D:NoneThe answer is c. 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 Can you explain the answer of this question below:Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of stock reserve on consignment stock will be:A:Rs.4500B:Rs.9000C:Rs.11250D:NoneThe answer is c. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of stock reserve on consignment stock will be:A:Rs.4500B:Rs.9000C:Rs.11250D:NoneThe answer is c..
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