CONSIGNMENT
CH :7 UNIT -1 of ICAI Book Pages 7.24 to Pages 7.32 .
Q.2 Value of Consignment Stock :
Total Cost of Goods Consigned =2,000 x 100 2,00,000
Add Consignor's expenses 5000
Total Cost of Goods Consigned boxes 2000 2,05,000
Less Normal Loss 200
Total goods received by the Consignee (a) 1800
Less Goods Sold by Consignee 1200
Consignment Stock (b) 600
Value of Consignment Stock = Total Cost of Goods Consigned x Consignment Stock / Total Goods received by the Consignee
Value of Consignment Stock = 2,05,000 x 6,00 / 1,800 = 68,333 .
Option (a) Ans : 68,333
Q.8 Total Commission
IMP. Total Cost 1,00,000
Cost of Goods sold(3/5 of 1,00,000) C.P 60,000
Sales Value S.P 70,000
Profit =(S.P-C.P) (70,000-60,000) 10,000
Let the Total Commission be " x "
Fixed Commission = 2 % of 70,000 1,400
Variable Commission = 20 % of (Profit - Total Commission)
20%(10,000- x ) = 2000 - .20 x Equation -I
Variable Commission = Total Commission - Fixed Commission.
x-1,400 Equation -I I
Hence from equation I & I I, we get
x - 1,400 = 2,000 - .20x
1.20 x = 3400
Therefore x = 3400/ 1.20 = 2,833
Total Commission = 2,833 . Option (a)
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CONSIGNMENT
Q.12 Value of Consignment Stock :
Total Cost of Consignor = (4,000 x 200) + (2,000) 82,000
Add Non-Recurring expenses of the Consignee (i.e Non- Selling ) 2,000
Total Cost 84,000
Value of Consignment Stock :
Total Cost x Consignment Stock / Total Goods sent on Consignment
84,000 x 100 / 400 (Option- d ) 21,000
Q.15 Value of Consignment Stock : Invoice Cost
Price Price
Total Cost of Consignor = (500 x 500) + (4,000) (at Invoice Price ) 2,54,000
Total Cost of Consignor = (500 x 400) + (4,000) (at Cost Price ) 2,04,000
Add Non-Recurring expenses of the Consignee (i.e Non-Selling ) 1,000 1,000
Total Cost 2,55,000 2,05,000
Value of Consignment Stock :(at Invoice Price)
Total Cost(at I.P) x Consignment Stock / Total Goods sent on Consignment
2,55,000 x 100 / 500 (Option- d ) 51,000
Additional Other question that can also be asked and answered from the same example :
Value of Consignment Stock :(at Cost Price)
Total Cost(at Cost) x Consignment Stock / Total Goods sent on Consignment
2,05,000 x 100 / 500 41,000
Amount of Stock Reserve
1) Value of Consignment Stock(at I.P)- Value of Consignment Stock at C.P
51,000- 41,000 10,000
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CONSIGNMENT
OR
2) (Total Invoice Price - Total Cost) x Consignment Stock / Total Goods received by the Consignee
2,50,000-2,00,000) x 100 / 5000 10,000
Q.24 Total Commission
Invoice Price on Goods Sold (2,00,000 x 4) / 5 1,60,000
Commission upto Invoice Price @2% = 1,60,000 x 2 % 3200
Commission in excess of Invoice Price @ 10 % = (1,76,000 - 1,60,000) x 10% 1600
Total Commission 4,800
Option (a) 4,800
Q.32 Total Commission payable "B"
Invoice Value of Goods Sent =(12,500 /10%) 1,25,000
75% of Invoice Value (75% of 1,25,000 ) 93,750
Total Sales 1,00,000
Excess of Sales over Invoice Price (1,00,000-93750) 6,250
Normal Commission 10% on sales = 10% of 1,00,000 10000
Additional Commission 25% on surplus above Invoice Price(i.e 25% of 6250) 1562.5
Total Commission (option -a) 11,562.50
Q.44 Profit on Consignment
To Goods sent on Consignment a/c. 2,00,000 By Consignee (Sales) 2,10,000
To Cash/Bank(Consignor Exp,) 5,000 By Consignment Stock 40,000
To Consignee (Exps./Comm.) (2,000+3,000+2,000) 7,000
To Gen. P&L a/c (Profit on Consignment) 38,000
(2,54,000-2,00,00-5,000-7,000)
2,54,000 2,54,000
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CONSIGNMENT
Other Important MCQ's
Q . Nos. 11 ,17, 21 , 28 ,29 ,33, 37, 38, 43, 47, 48, 49,62, 63 , 66
Question Set II -----------Match the Column .
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