Question

X & Y entered a Joint Venture for export of Indian Handicraft items to overseas customers. X sends goods worth Rs. 2,00 000 to Y for export to USA. Y exported goods worth Rs. 1,75,000 to USA for Rs. 2,10,000 and agreed to take away the remaining goods at cost less 10%. Y's Account will be __________ for goods taken away.

• A. debited by $Rs.22,500$
• B. credited by $Rs.22,500$
• C. credited by $Rs.25,000$
• D. debited by $Rs.25,000$

Answer 1

Answer: (A)

debited by $Rs.22,500$

X sends goods costing $Rs.2,00,000$ to Y of which good costing $Rs.25,000$ is not exported by Y to USA.

This remaining good costing $Rs.25,000$ are agreed to be taken over by Y at a cost less 10%.

Therefore $Rs.25,000$-10% of $Rs.25,000$= $Rs.22,500$

( Assuming 10% is on cost )