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MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____
- a)Rs.25,000
- b)Rs.l7,000
- c)Rs.20,000
- d)Rs.33,000
Correct answer is option 'B'. Can you explain this answer?
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MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on cons...
And Loss Account would be:
Ordinary commission = 2% of Rs.5,00,000 = Rs.10,000
Delcredere commission = 3% of Rs.5,00,000 = Rs.15,000
Total commission = Rs.25,000
Since the consignee could recover only Rs.4,92,000 from the trade receivables, there is a loss of Rs.8,000 (Rs.5,00,000 - Rs.4,92,000) on the sale.
The delcredere commission is paid to cover the risk of bad debts, but since there is a loss on the sale, the delcredere commission is not applicable in this case. Hence, the entire commission of Rs.25,000 would be transferred to the Profit and Loss Account as an expense.
Therefore, in the books of consignee, the commission to be transferred to Profit and Loss Account would be Rs.25,000.
Ordinary commission = 2% of Rs.5,00,000 = Rs.10,000
Delcredere commission = 3% of Rs.5,00,000 = Rs.15,000
Total commission = Rs.25,000
Since the consignee could recover only Rs.4,92,000 from the trade receivables, there is a loss of Rs.8,000 (Rs.5,00,000 - Rs.4,92,000) on the sale.
The delcredere commission is paid to cover the risk of bad debts, but since there is a loss on the sale, the delcredere commission is not applicable in this case. Hence, the entire commission of Rs.25,000 would be transferred to the Profit and Loss Account as an expense.
Therefore, in the books of consignee, the commission to be transferred to Profit and Loss Account would be Rs.25,000.
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MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on cons...
Here the total commission that consignee acquires is /(2+3)% as del credre commission is normally calculated on actual salesSo, commission is 5 %of 500000 =25000Now as consignee is given del credre commission he has to charge bad debts to his commission earned.So, net commission to p/l a/c is 250000-8000=17000
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MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. Can you explain this answer?
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MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. 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 MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. 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 MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. Can you explain this answer?.
MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. 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 MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. 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 MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____a)Rs.25,000b)Rs.l7,000c)Rs.20,000d)Rs.33,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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