5000 watches costing Rs 10,00,000 were sent on consignment. Consigner spent Rs 36000 on freight, etc. 100 watches were destroyed during transit . Consignee incurred the following expenses in connection with consignment.
1) Rs 9000 by way of duty and clearing charges
2) Rs 10,000 by way of advertisement. Consignee sold 3900 watches
Find out the value of abnormal loss and consignment stock
Pls solve this problem
| PARTICULARS | QUANTITY | RS. |
| COST OF GOODS SENT | 5000 | 1000000 |
| ADD: CONSIGNOR EXP (FREIGHT) | 36000 | |
| 5000 | 1036000 | |
| LESS: COST OF GOODS LOST | 100 | 20720 |
| COST OF GOODS RECEVED BY CONSIGNEE | 4900 | 1056720 |
| ADD: CONSIGNEE EXP | ||
| (NON RECURRING EXP) | ||
| > DUTY AND CLEARING CHARGES | 9000 | |
| > ADVERTISEMENT | 10000 | |
| 4900 | 1075720 | |
| LESS: COST OF GOODS SOLD | 3900 | 856185 |
| VALUE OF CLOSING STOCK | 1000 | 219535 |
COST OF ABNORMAL LOSS IS RS. 20,720
RMA And Associates LLP
New Delhi
CA Inter
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CCI
Pro
CAclubindia
