Multiple choice

If goods costing Rs. 1,20,000 are sent on consignment at invoice price by charging loading of 25% on invoice price, the amount debited to consignment will be

  1. Rs. 1, 50,000

  2. Rs. 40,000

  3. Rs. 1,60,000

  4. Rs. 90,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Loading = 25% of invoice price = 1/4th of I.P.= 1/3rd of cost = 1/3*1,20,000 = Rs.40,000 Thus amount debited = Rs.1, 60,000 Rs.40, 000 is the amount of loading. If loading is 25% of cost, then the amount debited is Rs.1, 50,000 If the invoice price is Rs.1, 20,000, then the cost of goods sent is Rs.90, 000

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