Question

Goods of the Invoice value Rs. $2,40,000$ sent out to consignee at $20\%$ profit on cost. The loading amount will be.

• A. Rs. $40,000$
• B. Rs. $48,000$
• C. Rs. $50,000$
• D. None

Answer 1

The correct option is A Rs. $40,000$

Loading on cost = 20% on cost = 1/5 of cost

This means, Loading on invoice price = 1/6 of invoice price

So, loading amount = (Rs, 2,40,000 x 1/6) = Rs. 40,000.