Question
A consignor sends goods costing ₹2,00,000 to consignee
at invoice price of 125% of cost. 1/10th goods are lost in transit (abnormal). Consignee sells 75% of remaining goods at 20% profit on invoice price. Calculate profit on consignment.Solution
Invoice price = 2,00,000 × 125% = ₹2,50,000. Loss in transit = 25,000 (abnormal → transferred to P&L). Goods left = 2,25,000. Sold = 75% = ₹1,68,750. Cost of these = 75% of 1,80,000 = ₹1,35,000 Sale value = 1,68,750 × 120% = ₹2,02,500. Profit = 2,02,500 – 1,35,000 = ₹67,500.
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