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Can you explain how to compute unsold stock here?
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Thread Starter
siva chaitanyaI understood that one sir but the expense is incurred by consignor know. He will incur those expenses on 100 goods know sir Then why we took 96 only
The cost incurred on 100 will be absorbed by 96 (like how you deal with the actual cost of goods).
Thread Starter
siva chaitanyaThis is the answer given but my doubt is why we are subtracting 4 from 100
Because there was a normal loss of 4 tons of coal. Consignee proportionate expense will include only those incurred on actual goods received.
ruchi lahoti
Because there was a normal loss of 4 tons of coal. Consignee proportionate expense will include only those incurred on actual goods received.
Mam, but the expense is incurred by consignor know. He will incur those expenses on 100 goods know mam
Thread Starter
siva chaitanyaMam but cost of goods and freight charges are for 100 goods then why we are subtracting 4 from 100
It is assumed that the loss is normal loss in the solution. The same has been explained in detail in the consigmnent chapter.
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