Ram of kolkata sends out goods costing Rs. 1,00,000 to Y of mumbai at 20% profit on invoice price.
1/10th of the goods were lost in transit. 1/2 of the balance goods were sold .
the amount of stock reserve on consignment stock will be
Answer is 11,250.......please Solve it in detail..............!!
Cost of Goods Sent on Consignment 100000
Less: Goods Lost in Transit 1/10th 10000
Goods received by consignee 90000
Goods Sold by Consignee ½ 45000
Cost of Goods in Stock 45000
Let us assume invoice value of goods is 100
Profit @ 20% of above will be 20
So Cost Price will be 80
Now doing cross Multiplication(Kilwish)
Stock reserve = Rs. 45000 x 20/80 i.e. Rs. 11250/-
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Cost of Goods Sent on Consignment 100000 Less: Goods Lost in Transit 1/10th 10000 Goods received by consignee 90000 Goods Sold by Consignee ½ 45000 Cost of Goods in Stock 45000 Let us assume invoice value of goods is 100 Profit @ 20% of above will be 20 So Cost Price will be 80 Now doing cross Multiplication(Kilwish) Stock reserve = Rs. 45000 x 20/80 i.e. Rs. 11250/- |
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Agree with this explanation
| Originally posted by : sudheer | ||
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Cost of Goods Sent on Consignment 100000 Less: Goods Lost in Transit 1/10th 10000 Goods received by consignee 90000 Goods Sold by Consignee ½ 45000 Cost of Goods in Stock 45000 Let us assume invoice value of goods is 100 Profit @ 20% of above will be 20 So Cost Price will be 80 Now doing cross Multiplication(Kilwish) Stock reserve = Rs. 45000 x 20/80 i.e. Rs. 11250/- |
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You mention here (Kilwish) what is it................??
Kilwish in math language is Cross multiplication 
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