Question

3. X sends out 400 bags to Y costing 200 each, consignor
expenses were '4000. Y's non selling expenses · 2,000. and
selling expenses of '1000. 300 bags were sold by Y. Value of
consignment stock will be:
(a) '20,400
(b) `20,700
(c) 22,000
(d) 21,500
with explanation​

Answer 1

(d) 21,500

X Sends to Y : 400 × 200 = ₹ 80,000

Add : Expenses = ₹ 4,000

_________

Total Expenses ( COST ) ₹ 84,000

Y's Stock ₹ 84,000

Y Sells 300 bags out of 400

( 84,000 × 300 / 400 )

Cost of Bags Sold by Y = ₹ 63,000

Add : Selling Expenses = ₹ 1,000

Add : Non - Selling Exp. = ₹ 2,000

_________

Total Sell Value ₹ 66,000

Remaining Stock : ₹ 21,000

(84,000 - 63,000)

Add : Non Selling Exp. ₹ 500

(Non Selling Exp. are included

in cost) 2000 × 3/4 ___________

Total Cost ₹ 21,500

Value of consignment stock will be: ₹21,500

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