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X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:
- a)Rs.15,000
- b)Rs.22,000
- c)Rs.21,000
- d)Rs.20,000
Correct answer is option 'A'. Can you explain this answer?
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X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commis...
Calculation of Net Commission
Commission on Sales = 2% of Rs 4,00,000 = Rs 8,000
Del-credere Commission = 3% of Rs 3,95,000 = Rs 11,850
Total Commission = Rs 19,850
Less: Cost of Goods Sold = Rs 3,00,000
Net Commission = Rs 19,850 - Rs 3,00,000 = (-) Rs 2,80,150
As the net commission is negative, it means that there is a loss. Therefore, no amount is transferred to P/L. The correct answer is none of the above.
Commission on Sales = 2% of Rs 4,00,000 = Rs 8,000
Del-credere Commission = 3% of Rs 3,95,000 = Rs 11,850
Total Commission = Rs 19,850
Less: Cost of Goods Sold = Rs 3,00,000
Net Commission = Rs 19,850 - Rs 3,00,000 = (-) Rs 2,80,150
As the net commission is negative, it means that there is a loss. Therefore, no amount is transferred to P/L. The correct answer is none of the above.
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X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commis...
When the consignee is in receipt of del-credere commission, loss on account of bad debts is born by the consignee.
The amount to be transferred to P/L A/c by consignee in that case will be: =
Gross Commission Received – Loss on account of Bad Debts .
So, calculation
: Gross Commission Received
(Rs. 400000 x 5%) =20000
minus
Loss on Account of Bad Debts
(Rs. 400000 – Rs. 395000) =5000
Net amount to be transferred to General P/L 15000
The amount to be transferred to P/L A/c by consignee in that case will be: =
Gross Commission Received – Loss on account of Bad Debts .
So, calculation
: Gross Commission Received
(Rs. 400000 x 5%) =20000
minus
Loss on Account of Bad Debts
(Rs. 400000 – Rs. 395000) =5000
Net amount to be transferred to General P/L 15000
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X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct answer is option 'A'. Can you explain this answer?
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X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct 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 X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct 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 X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct answer is option 'A'. Can you explain this answer?.
X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct 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 X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct 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 X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct answer is option 'A'. Can you explain this answer?.
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X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs 4 lacs. However, consignee is able to recover Rs 3,95,000 from the debtors. The amount of profit to be transferred to P/L as net commission by consignee will be:a)Rs.15,000b)Rs.22,000c)Rs.21,000d)Rs.20,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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