Question

X sent Y 10 machines each cost Rs 4000 and spent the following amounts towards the consignment.
Freight Rs 2,000; insurance Rs 500; carriage rs 300.
Y paid the following expenses:
Duty rs 1400;entry tax rs. 400; godown rent rs 1000;salary, other administration expenses rs 1500. End of the year Y report that he has sold only 8 of the machines for Rs 47000. You are required to arrive value of closing stock in consignment.

Answer 1

closing stock are Rs 9,420 and sold machinery on profit are 9,320

Answer 2

Total value of consignment:

Machines 4000

Freight 2000

Insurance 500

Carriage 300

Duty 1400

Entry tax 400

consigned goods to y = 4000 X 10 = 40000

Closing consignment to the stock = 4000 X 2 = 8000

proportionate expenses of x = 2500*2/10.

proportionate expenses of y = 1800*2/10.

Closing stock in consignment = 8000 +500 + 60 = 8860