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
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B
Rs. 1,20,000
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C
Rs. 20,000
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D
None
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Solution
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.