Question

10. X sent Y 10 machines each cost Rs.4,000 and spent the following
amounts towards the consignment.
Freight Rs. 2,000; Insurance Rs. 500; Carriage Rs.300.
Y paid the following expenses:
Duty Rs. 1,400; Entry tax Rs. 400; Godown rent Rs. 1,000; Salary, other
administration expenses Rs. 1,500. End of the year Y report that he ha
soldonly 8 of the machines for Rs. 47,000. You are required to arrive
value ofclosing stock in consignment.
​

Answer 1

Answer:

Valuation of Unsold Stock can be calculated by following way

1. find balance unit of unsold stock and multiply it with each Quantity Rate

2. Add: Propertionate Direct expenses of Consignor

3. Add: Propertionate Direct expenses of Consignee

Valuation of Unsold Stock

2 Machines @ Rs. 4000 = 8000

Add: Propertionate Direct expenses of

Consignor

Expenses on 10 Machines=2800

Expenses on 2 Machines = \frac{2800}{10}

10

2800

x 2 560

Add: Propertionate expenses of

Consignee

Expenses on 10 Machines=1800

Expenses on 2 Machines = \frac{1800}{10}

10

1800

x 2 360