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Consignment

Nibedita Panda (Student ) (17 Points)

01 April 2017

Can I get the ans for this question..

Goods sent on consignment Rs 50000. During transit 1/10th of the goods were destroyed by fire. Again 1/9th of the goods received by consignee were destroyed by fire in godown. Half of the remaining goods were sold for Rs 30000.Freight and insurance paid by the consignor were Rs 2500 and Rs 1500 respectively. Calculate closing inventory.

(a) 24000

(b) 21600

(d) None

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CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 01 April 2017

B : 21600

Explain :

Good Total Cost: 50000 Plus Freight 2500 and Insurance 1500 = 54000

1/10 the good destroyed in Transit Means 54000*1/10 = 5400
Balance goods Now : 54000-5400 + 48600
1/9 th good destroyed by fire in godown = 48600*1/9 = 5400
Balance good now + 48600-5400 =43200
Half of remaining goods sold : means 43200*1/2 = 21600 Sold

Closing Inventory is + 43200-21600 = 21600

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Nibedita Panda (Student ) (17 Points)
Replied 01 April 2017

Thanks a lot sir... While calculating the goods lost in transit I didn't add the expenses n directly took 50000..so I was getting 24000 which was wrng.. Thanks a lot for ur explanation..