Multiple choice

X sent out 1000 boxes to Ram of Delhi costing Rs. 100 each at a profit of 1/6th on invoice price. Goods sent out on consignment to be credited in general trading will be

  1. Rs. 1, 00, 000

  2. Rs. 1, 20, 000

  3. Rs. 20, 000

  4. none of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 general trading a/c is credited with the cost of goods sent on consignment (without loading) Thus, General trading a/c will be debited with    =Rs (1000*100)                                                                           =Rs 1,00,000