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X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4000. Consignee expenses fright rs1000 selling rs2000,400 bags were sold. The amount of stock reserve will be:?
Most Upvoted Answer
X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4...
Calculation of Stock Reserve
Given Information
- X consigns 500 bags to Y costing Rs 400 each.
- Consignors expenses Rs 4000.
- Consignee expenses freight Rs 1000.
- Selling price Rs 2000.
- 400 bags were sold.
Calculation of Total Cost
Total Cost = Cost Price + Consignors Expenses + Consignee Expenses
- Cost Price = 500 * Rs 400 = Rs 2,00,000
- Consignors Expenses = Rs 4000
- Consignee Expenses = Rs 1000
- Total Cost = Rs 2,05,000
Calculation of Total Sales
Total Sales = Selling Price * Number of Bags Sold
- Selling Price = Rs 2000
- Number of Bags Sold = 400
- Total Sales = Rs 8,00,000
Calculation of Gross Profit
Gross Profit = Total Sales - Total Cost
- Total Sales = Rs 8,00,000
- Total Cost = Rs 2,05,000
- Gross Profit = Rs 5,95,000
Calculation of Stock Reserve
Stock Reserve = (Unsold Bags / Total Bags) * Gross Profit
- Total Bags = 500
- Unsold Bags = Total Bags - Number of Bags Sold = 500 - 400 = 100
- Stock Reserve = (100 / 500) * Rs 5,95,000 = Rs 1,19,000
Conclusion
The amount of stock reserve is Rs 1,19,000. Stock reserve is the amount set aside from the gross profit to cover any potential losses due to unsold goods. It is calculated as a percentage of the gross profit based on the ratio of unsold goods to the total goods. In this case, the stock reserve is calculated as 20% of the gross profit since 100 bags were unsold out of a total of 500 bags.
Community Answer
X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4...
₹41000
Because the cost price of the left 100 bags is ₹40000
and the while calculating closing stock we take the non-recurring expenses into consideration.
Therefore we take consignor's expenses and consignee's freight expenses into consideration.
Cost of 100 bags @₹400 each. = ₹40000
(+) Proportionate expenses of consignor=(4000/500)*100=800
(+) Proportionate expenses of consignee=(1000/500)*100=200
value of closing stock = 40000+ 800+ 200= 41000
Because the cost price of the left 100 bags is ₹40000
and the while calculating closing stock we take the non-recurring expenses into consideration.
Therefore we take consignor's expenses and consignee's freight expenses into consideration.
Cost of 100 bags @₹400 each. = ₹40000
(+) Proportionate expenses of consignor=(4000/500)*100=800
(+) Proportionate expenses of consignee=(1000/500)*100=200
value of closing stock = 40000+ 800+ 200= 41000
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X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4000. Consignee expenses fright rs1000 selling rs2000,400 bags were sold. The amount of stock reserve will be:?
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X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4000. Consignee expenses fright rs1000 selling rs2000,400 bags were sold. The amount of stock reserve will be:? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4000. Consignee expenses fright rs1000 selling rs2000,400 bags were sold. The amount of stock reserve will be:? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4000. Consignee expenses fright rs1000 selling rs2000,400 bags were sold. The amount of stock reserve will be:?.
X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4000. Consignee expenses fright rs1000 selling rs2000,400 bags were sold. The amount of stock reserve will be:? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4000. Consignee expenses fright rs1000 selling rs2000,400 bags were sold. The amount of stock reserve will be:? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X consigns 500 bags to Y costing Rs 400 each. Consignors expenses rs 4000. Consignee expenses fright rs1000 selling rs2000,400 bags were sold. The amount of stock reserve will be:?.
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