L of Lucknow consigned goods costing ` 60,000 to A of Allahabad at an invoice price bearing 331/3 % mark up on the cost price. Goods costing ` 15,000 were damaged in the transit and the insurance company admitted the claim in full. Expenses incurred by the consignor on loading and transportation of the goods amounted to ` 1,800. The consignee incurred ` 200 on cartage and ` 6,000 as Godown Rent and sold 2/3 of the goods received by him at the invoice price. He is entitled to 5% normal commission and 2.5% del credere commission. Find the value of goods sold

Question

Quizplus · Accepted Answer

The cost price of the goods is `60,000. With a 33.33% markup, the invoice price is `60,000 * (1 + 33.33/100) = `80,000. Goods costing `15,000 were damaged, so the cost of goods sent and available for sale is `60,000 - `15,000 = `45,000. However, the invoice price of goods available for sale would be calculated on the original markup percentage, making it `60,000 * 33.33% = `20,000 as markup on the remaining goods, leading to an adjusted invoice price of `60,000 (remaining goods' cost) + `20,000 (markup) = `80,000. Since 2/3 of the goods were sold, the value of goods sold at invoice price is 2/3 of `80,000 = `53,333.33. However, given the options do not match this calculation directly and considering the context of the question focusing on the invoice price and the sale of 2/3 of the goods, the closest and most appropriate answer based on the provided options and the calculation mistake would be `40,000, assuming a direct relation to the portion of goods sold without recalculating the markup on the reduced cost base due to damage. This seems to be an error in calculation interpretation. The correct approach should involve recalculating the invoice price based on the goods available for sale post-damage and then applying the 2/3 sale proportion.

L of Lucknow Consigned Goods Costing ` 60,000 to a of Allahabad