Cpt exam consignment sum

This query is : Open

Raj Kotecha (Querist)
Follow

16 April 2015 A sends out goods costing Rs.2,00,000 at cost + 25%,with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales.What will be the profit on consignmet in the books of consignor? a) Rs.86,200 b) Rs.70,000 c) Rs.75,200 d) None

vignesh

vignesh (Expert)
Follow

16 April 2015 Greetings Raj,
Answer is RS 75200..
.. Solution arrived in detailed analysis
..

Cost + 50% would be 2 lacs plus 50% i.e Rs 3 lacs.
if 4/5th (80%) is sold, that means 3 lacs multiplied by 80% is the sales value..
Therefore sales = Rs 2,40,000
Commission is 2% of Sales
So commission = 2.4 Lakhs multiplied by 2% i.e Rs 4800
Now the The sale value of Rs 2,40,000 is at cost + 50% .. means if cost is 100 rs , profit is 50% of that = Rs 50 and sale is Rs 100+ 50 = Rs 150.
So for Rs 150 sales = Profit is 50
then for 2.4 lacs sales = Profit is how much.
Cross multiplication will give u Rs 80000 as profit.
Rs 80000 is gross profit and the consignor has to deduct commission of Rs 4800 from this and u will get ur Answer as Rs 75200
Please come up with any query you got. :)

Online classes for CA CS CMA