Karthik consigns to Sarathy 80 cases of goods at cost of Rs. 250 per case and incurs the following expenses in connection with the same. Cartage and Freight Rs. 600 and Insurance Rs. 1,400. On arrival of the goods, Sarathy pays clearing charges and cartage Rs. 400 and storage charges Rs. 200.60 cases are sold for Rs. 20,000. He is entitled to a commission of 10%. He sends to Karthik an account sales and a bank draft for the balance due. The market price at Sarathy's place falls to Rs. 270 on the accounting date. Calculate the value of unsold stock.
Answers
Explanation:
Kartik understands 80,000 words. Consignment visit supported these goods are being sent. The question asked us to find out the value of unsold stock, and our Kartik is being the consigner of the goods. The good that was sent was worth 80,000. The 80,000 have been sold. The remaining goods will make up 20%. We have to find out the value of this 20%. Whenever we find the value of unsold stock, it's in the consigning account. We have to take the price of the goods or we can say the cost of unsold goods. Mhm, Hmm. We have to include this non recurring expenses with the cost. Consigning as well as Kansteiner should be considered. The consigner plus can sign. The added cost will give us the value of the unsold stock. We will be doing that as well. There is no non recurring expenses. For non recurring expenses, we have to include the Kansteiner as well. The first non recurring expenses of the insurance cost was given to be 2000 by the Kansteiner. Mm, that's right. Mhm, Hmm. Now, what happened? The consign ear's non recurring expenses are 2000 dollars. The transportation of the goods has cost the consignor some money. The transportation cost is not a recurring expense on the part of canton. This is of 1000. He has incurred some costs on go downrange. Go down rent is not recurring expenses. He has to pay these recurring expenses and so they go downward. Total non recurring expenses on the part of consigning comes to 1000. If we add this, then the total is 3000. No, not at all. Mm, that's right. The total expenses are non recurring. Let's find out if it's right. Mhm, that's right. A non recurring expense. Mm, that's right. The good that is unsold is 20%. If we find the expenses for the unsold goods, it will be a non recurring expense. Expenses For this. There was 20%. Will it be total non recurring expense? This is all of the goods. We need to find only for 20%. This comes to 600. The expenses for 20% of the unsold good are 600. Let's find out how much unsold goods cost. Mhm, that's right. We will make a call. The first thing we will do is take the unsold goods off the market. Only 20% of people are consoled. 16,000 is what this comes to. We are going to add non recurring expenses with this 16,000. The non recurring expenses have been calculated and come to 600 rupee. The cost of the Unsold Good will include those. It's 600. If we add these two values, then this will be 16,600. This is the price of unsold goods.