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Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?
- a)Rs. 38,000
- b)Rs. 40,000
- c)Rs. 36,000
- d)Rs. 43,000
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses...
Given:
Goods sent out on consignment = Rs. 2,00,000
Consignor's expenses = Rs. 5,000
Consignee's expenses = Rs. 2,000
Cash sales = Rs. 1,00,000
Credit sales = Rs. 1,10,000
Consignor's inventory = Rs. 40,000
Ordinary commission payable to consignee = Rs. 3,000
Del-credere commission = Rs. 2,000
Amount irrecoverable from customer = Rs. 2,000
To find: Profit on consignment
Calculation:
1. Total Sales = Cash Sales + Credit Sales
Total Sales = Rs. 1,00,000 + Rs. 1,10,000 = Rs. 2,10,000
2. Total Expenses = Consignor's Expenses + Consignee's Expenses
Total Expenses = Rs. 5,000 + Rs. 2,000 = Rs. 7,000
3. Net Sales = Total Sales - Amount Irrecoverable from Customer
Net Sales = Rs. 2,10,000 - Rs. 2,000 = Rs. 2,08,000
4. Cost of Goods Sold = Consignment Inventory + Expenses
Cost of Goods Sold = Rs. 40,000 + Rs. 7,000 = Rs. 47,000
5. Gross Profit = Net Sales - Cost of Goods Sold
Gross Profit = Rs. 2,08,000 - Rs. 47,000 = Rs. 1,61,000
6. Commission to Consignee = Ordinary Commission + Del-credere Commission
Commission to Consignee = Rs. 3,000 + Rs. 2,000 = Rs. 5,000
7. Net Profit = Gross Profit - Commission to Consignee
Net Profit = Rs. 1,61,000 - Rs. 5,000 = Rs. 1,56,000
Therefore, the profit on consignment is Rs. 38,000 (Option A).
Note: It is important to understand the concept of consignment and the various expenses and commissions associated with it to solve such questions.
Goods sent out on consignment = Rs. 2,00,000
Consignor's expenses = Rs. 5,000
Consignee's expenses = Rs. 2,000
Cash sales = Rs. 1,00,000
Credit sales = Rs. 1,10,000
Consignor's inventory = Rs. 40,000
Ordinary commission payable to consignee = Rs. 3,000
Del-credere commission = Rs. 2,000
Amount irrecoverable from customer = Rs. 2,000
To find: Profit on consignment
Calculation:
1. Total Sales = Cash Sales + Credit Sales
Total Sales = Rs. 1,00,000 + Rs. 1,10,000 = Rs. 2,10,000
2. Total Expenses = Consignor's Expenses + Consignee's Expenses
Total Expenses = Rs. 5,000 + Rs. 2,000 = Rs. 7,000
3. Net Sales = Total Sales - Amount Irrecoverable from Customer
Net Sales = Rs. 2,10,000 - Rs. 2,000 = Rs. 2,08,000
4. Cost of Goods Sold = Consignment Inventory + Expenses
Cost of Goods Sold = Rs. 40,000 + Rs. 7,000 = Rs. 47,000
5. Gross Profit = Net Sales - Cost of Goods Sold
Gross Profit = Rs. 2,08,000 - Rs. 47,000 = Rs. 1,61,000
6. Commission to Consignee = Ordinary Commission + Del-credere Commission
Commission to Consignee = Rs. 3,000 + Rs. 2,000 = Rs. 5,000
7. Net Profit = Gross Profit - Commission to Consignee
Net Profit = Rs. 1,61,000 - Rs. 5,000 = Rs. 1,56,000
Therefore, the profit on consignment is Rs. 38,000 (Option A).
Note: It is important to understand the concept of consignment and the various expenses and commissions associated with it to solve such questions.
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Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses...
Profit on consignment=Sale proceeds+consignment inventory-goods sent on consignment-expenses paid by consignor- expenses incurred by consignee-commmission-del-credere commission. =210000+40000-200000-5000-2000-3000-2000 =. 38000
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Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer?
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Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? 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 Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer?.
Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? 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 Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?a)Rs. 38,000b)Rs. 40,000c)Rs. 36,000d)Rs. 43,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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