Cpt exam consignment sum

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Raj Kotecha (Querist)
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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)
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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. :)

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