Question

Q1. ‘X’ of Delhi purchased 10,000 pieces of Sarees@ `100 per Saree. Out of these Sarees,


6,000 were sent on consignment to ‘Y' of Agra at a selling price of `120 per Saree. The Consignor paid `3,000 for Packing and freight.


‘Y’ sold 5,000 Sarees at `125 per Saree and Incurred `1,000 for selling expenses and remitted


`5,00,000 to Delhi account. They are entitled to a commission of 5% on total sales plus a further 20% commission on any surplus price realised over `120 per Saree.


3000 Sarees were sold in Delhi at `110 per Saree. Owing to fall in market price, the value of stock of Saree in hand is to be reduced by 10%.

Answer 1

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