Accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2011 X of Kolkata sends out 2000 boxes to Y of Delhi costing Rs. 100 each. Consignors expenses Rs. 5000. 1/10th of the boxes were lost in consignees godown and treated as abnormal losses. 1200 boxes were sold by consignee. The value if consignment stock will be?
OPTIONS:
(a) 68,333
(b) 61,500
(c) 60,000
(d) 60,250

Please explain the method and calculation.
Thanks a lot in advance.

Hari Beldona

Hari Beldona (Expert)
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09 December 2011 Note:1.Abnormal loss will reduce both quantity and value
2.Normal loss will reduce quantity only (but not value)
Goods sent on consignment 2,00,000
Consignor's Expenses 5,000
Cost of consignment 2,05,000
Less:Abnormalloss200boxes
205000/2000x200= 20,500
Less:Cost of goods sold
205000/2000x1200= 1,23,000
Value of consignment stock
(2000-200-1200)=600boxes
2,05,000-20,500-1,23,000= 61,500

If it Normal Loss:

Goods sent on consignment 2000Boxes 20000
Consignors expenses 5000
Less Normal Loss 200 --
Cost of consignment 1800 20500
Less Cost of goods sold 1200
20500/1800x1200= 136667
Value of closing stock 200
(205000-136667)= 68333

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