Question

Goods sent on consignment Invoice value Rs. 2,00,000, at cost plus 33.33% ,20% of the goods were lost in transit. Insurance claim received Rs. 10,000. The amount of abnormal loss to be transferred to General Profit & Loss A/c is _______________ .

• A. Rs. 30,000
• B. Rs. 20,000
• C. Rs. 35,000
• D. Rs. 25,000

Answer 1

Answer: (B)

Rs. 20,000

Cost price of total stock $=$ Invoice value $\times \frac{3}{4}$

$=$ $2,00,000\times \frac{3}{4}$

$=$ $1,50,000$

Cost price of goods lost in transit $=$ Total cost $\times$ $\frac{20}{100}$

$=$ $1,50,000\times \frac{20}{100}$

$=$ $30,000$

Abnormal loss $=$ Cost price $-$ Insurance received

$=$ $30,000-10,000$

$=$ $20,000$.