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Q. X sends out goods to Y, costing 3,60,000. Goods are to be sold at cost plus 25% on sales. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be
- Correct Answer - Option(A)
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- Filed under category Fundamentals of Accounting
Explanation by: Gopal Sharma
The sales value of the goods is 3,60,000 / (100 - 25) = 4,80,000. The advance payment requested by the consignor is equivalent to 60% of the sales value, so the amount of the advance will be 4,80,000 x 60% = 288,000.
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