Question

From the following details, calculate the net load on goods sent, to branch:>> Goods sent to branch (Cost to H.O.) = Rs.1,80,000>> Goods returned by branch to H.O = Rs.25,000>> Goods are invoiced to the branch at cost plus 25% ​

Answer 1

Answer:

1,80,000-25000

=155000*25divide 100

=38750

Answer 2

Concept:

The Branch can simply calculate the profit made by HO against goods that are shipped at cost price while using the goods at invoice price as the debtors' method (in the books of the HO) (by deducting the Cost Price from the Sales realized).

HO may increase the Cost Price by a certain percentage or fixed amount in order to conceal profit from the Branch. It is referred to as a "loaded" price when a profit or markup is added to the cost price of a good, increasing the initial cost.

Mark-up Loaded on the cost price or added to the invoice price: Computation HO may add a particular percentage or fixed amount to the Cost Price in order to disclose the Invoice Price.

Given:

Goods sent to branch = 1,80,000

Goods returned by branch to HO = 25,000

Goods invoiced @ 25% on cost

Find:

Net load on goods sent

Solution:

Goods sent = 180000-25000 = 155000

Net load = 155000*25% = 38750

Netload = 38750

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