Multiple choice

The goods of invoice price Rs. 1, 25,000 were issued to Ajay by Vijay for which consignee paid advance covering 80% of invoice value. 3/5th of the goods were sold by consignee. Calculate the proportionate amount of advance to be retained with consignor.

  1. Rs. 60, 000

  2. Rs. 40, 000

  3. Rs. 75, 000

  4. Rs. 50, 000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total advance received = Rs.1, 00,000 (80% of 1, 25,000)             Balance of goods = 1- 3/5 = 2/5             Advance to retain = 2/5th of 1, 00,000 = 40,000 Rs. 60,000 is the amount of advance adjusted. If calculation is made out of Rs.1, 25,000 then adjustment amount would be Rs.75, 000 and Rs.50, 000 respectively.

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