Question

X sent out 1000 boxes to Ram of Delhi costing Rs 100 each at a profit of 1/6th on Invoice Price. Goods sent out on consignment to be credited in general trading will be:

• A. Rs. 1,00,000
• B. Rs. 1,20,000
• C. Rs. 20,000
• D. None

Answer 1

The correct option is A Rs. 1,00,000

Goods sent out on consignment to be credited in trading account is Rs 100000 because we record goods sent on consignment on cost basis.