Multiple choice

Rahim of Agra sends 1000 boxes to Ram of Delhi costing Rs. 100 each at an invoice price of Rs. 120 each. Goods sent on consignment to be credited in general trading account 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

Amount to be transferred to General trrading account from Goods sent on Consignment A/c would be after removing loading.Thus, General Trading a/c would be credited with Rs (1,20,000-20000) = Rs 1,00,000

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