Multiple choice

Rohit from Goa consigned goods to Sanjeev of Ludhiana of the proforma invoice value of Rs. 5,00,000. He spent Rs. 1,00,000 on sending the goods. He drew a bill of Rs. 1,50,000 on Sanjeev as advance. At the end of the period, the goods of invoice value of Rs. 1,50,000 are unsold. Rohit wants to maintain proportionate advance. What should be the amount of advance so maintained?

  1. Rs. 45,000

  2. Rs. 1,50,000

  3. Rs. 37,500

  4. Rs. 75,000

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This is the correct answer. The amount of advance for the goods of Rs. 5,00,000 is Rs. 1,50,000. Thus, the advance to be maintained will be Rs. 45,000 on the balance goods of Rs. 1,50,000.

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