Question

From the following data compute the profit on consignment Cost of goods sent = Rs 7,00,000. 4/5th of the goods sold at Rs. 8,15,000. Consignee is entitled to a commission at 10% on sales.​

Answer 1

Cost of goods sold = 4/5 × 700,000

                                = RS 5,60,000

Commission = 10% on RS 8,15,000

                     = RS 81500

Profit = Selling Price - Cost price + Commission

        =  815000 - 560000 + 81500

        =  815000 - 641500

        =  173500

Hence the profit on consignment is RS 173500.