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QN1: P of Delhi sends out 100 boxes of toothpaste costing Rs.200 each. Each box consist of 12 packets. 60 boxes were sold by consignee at Rs.20 per packet. Amount of sale value will be:
(a) Rs.14,400
(b) Rs.12,000
(c) Rs.13,200
(d) Rs.14,200

View Answer

Answer: (a) Rs.14,400

QN2. X of Kolkata sends out 2,000 boxes to Y of Delhi costing Rs.100 each. Consignor’s expenses Rs.5,000. 1/10th of the boxes were lost in consignee’s godown and treated as normal loss. 1,200 boxes were sold by consignee. The value of consignment Inventories will be:
(a) Rs.68,333
(b) Rs.61,500
(c) Rs.60,000
(d) Rs.60,250

View Answer

Answer: (a) Rs.68,333

QN3. Goods costing Rs.2,00,000 sent out to consignee at Cost + 25%. Invoice value of the goods will be:
(a) Rs.2,50,000
(b) Rs.2,40,000
(c) Rs.3,00,000
(d) None

View Answer

Answer: (a) Rs.2,50,000

QN4. Goods costing Rs.1,80,000 sent out to consignee to show a profit of 20% on Invoice Price. Invoice price of the goods will be:
(a) Rs.2,16,000
(b) Rs.2,25,000
(c) Rs.2,10,000
(d) None

View Answer

Answer: (b) Rs.2,25,000

QN5. Goods of the Invoice value Rs.2,40,000 sent out to consignee at 20% profit on cost. The loading amount will be:
(a) Rs.40,000
(b) Rs.48,000
(c) Rs.50,000
(d) None

View Answer

Answer: (a) Rs.40,000

QN6. X sent out certain goods to Y of Delhi. 1/10 of the goods were lost in transit. Invoice value of goods lost Rs.12,500. Invoice value of goods sent out on consignment will be:
(a) Rs.1,20,000
(b) Rs.1,25,000
(c) Rs.1,40,000
(d) Rs.1,00,000

View Answer

Answer: (b) Rs.1,25,000

QN7. Rabin consigned goods for the value of Rs.8,250 to Raj of Kanpur and paid freight etc. of Rs.650 and insurance Rs.400. He drew a bill on Raj for 3 months after date for Rs.3,000 as an advance against consignment, and discounted the bill for Rs.2,960. Further, he received Account Sales from Raj showing that, part of the goods had realized gross Rs.8,350 and that his expenses and commission amounted to Rs.870. The Inventories unsold was valued at Rs.2750. Consignee wants to remit a draft for the amount due. The amount of draft will be:
(a) Rs.2,130
(b) Rs.4,480
(c) Rs.5,130
(d) Rs.5,090

View Answer

Answer: (b) Rs.4,480

QN8. X of Kolkata sends out goods costing Rs.1,00,000 to Y of Delhi. 3/5th of the goods were sold by consignee for Rs.70,000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of Commission will be:
(a) Rs.2,833
(b) Rs.2,900
(c) Rs.3,000
(d) Rs.2,800

View Answer

Answer: (a) Rs.2,833

QN9. X of Kolkata send out 1,000 bags to Y of Delhi costing Rs.200 each. Consignor’s expenses Rs.2,000. Y’s expenses non-selling Rs.1000, selling Rs.2000. 100 bags were lost in transit.Value of lost in transit will be:
(a) Rs.20,200
(b) Rs.20,300
(c) Rs.20,000
(d) Rs.23,000

View Answer

Answer: (a) Rs.20,200

QN10. X of Kolkata sends out 1,000 bags to Y of Delhi costing Rs.2,000 each. 600 bags were sold at 10% above cost price. Sales value will be:
(a) Rs.13,20,000
(b) Rs.13,00,000
(c) Rs.12,00,000
(d) 13,50,000

View Answer

Answer: (a) Rs.13,20,000

QN11. Which of the following statement is not true:
(a) If del-credere commission is allowed, bad debt will not be recorded in the books of
consignor
(b) If del-credere commission is allowed, bad debt will be debited in consignment account
(c) Del-credere commission is allowed by consignor to consignee
(d) Del-credere commission is generally relevant for credit sales

View Answer

Answer: (b) If del-credere commission is allowed, bad debt will be debited in consignment account

QN12. X of Kolkata sends out 400 bags to Y of Delhi costing Rs.200 each. Consignor expenses Rs.2,000. Y’s non selling expenses Rs.2,000 and selling expenses Rs.1,000. 300 bags were sold by Y. Value of consignment Inventories will be:
(a) Rs.20,400
(b) Rs.20,200
(c) Rs.20,000
(d) Rs.21,000

View Answer

Answer: (d) Rs.21,000

QN13. X of Kolkata sent out 2,000 boxes costing 100 each with the instruction that sales are to be made at cost + 45%. X draws a bill on Y for an amount equivalent to 60% of sales value. The amount of bill will be:
(a) Rs.1,74,000
(b) Rs.2,00,000
(c) Rs.2,90,000
(d) Rs.1,20,000

View Answer

Answer: (a) Rs.1,74,000

QN14. Which of the following statement is wrong:
(a) Consignor is the owner of the consignment Inventories
(b) Del-credere commission is allowed by consignor to protect himself from bad debt
(c) Proportionate consignor’s expenses is added up with consignment Inventories
(d) All proportionate consignee’s expenses will be added up for valuation of consignment Inventories.

View Answer

Answer: (d) All proportionate consignee’s expenses will be added up for valuation of consignment Inventories.

QN15. X of Kolkata sends out 500 bags to Y costing Rs.400 each at an invoice price of Rs.500 each. Consignor’s expenses Rs.4,000 consignee’s non-selling expenses Rs.1,000 and selling expenses Rs.2,000. 400 bags were sold. The amount of consignment Inventories at Invoice Price will be:
(a) Rs.50,900
(b) Rs.50,800
(c) Rs.50,000
(d) Rs.51,000

View Answer

Answer: (d) Rs.51,000

QN16. X of Kolkata sends out 500 bags to Y costing Rs.400 each at an invoice price of Rs.500 each. Consignor’s expenses Rs.4,000 consignee’s, non-selling expenses Rs.1000, selling expenses Rs.2,000. 400 bags were sold. The amount of Inventories Reserve will be
(a) Rs.10,000
(b) Nil
(c) Rs.20,000
(d) Rs.20,400

View Answer

Answer: (a) Rs.10,000

QN17. Commission will be shared by:
(a) Consignor & Consignee
(b) Only Consignee
(c) Only Consignor
(d) Third Party

View Answer

Answer: (b) Only Consignee

QN18. X of Kolkata sends out certain goods to Y of Mumbai at cost + 25%. 1/2 of the goods received by Y is sold at Rs.1,76,000 at 10% above invoice price. Invoice value of goods send out is:
(a) Rs.300,000
(b) Rs.3,20,000
(c) Rs.180,000
(d) Rs.340,000

View Answer

Answer: (b) Rs.3,20,000

QN19. X of Kolkata sends out goods costing Rs.3,00,000 to Y of Mumbai at cost + 25%. Consignor’s expenses Rs.5,000. 1/10th of the goods were lost in transit. Insurance claim received Rs.3,000. The net loss on account of abnormal loss is:
(a) Rs.27,500
(b) Rs.25,500
(c) Rs.30,500
(d) Rs.27,000

View Answer

Answer: (a) Rs.27,500

QN20. Rahim of Kolkata sends out 1,000 boxes to Ram of Delhi costing Rs.100 each at an invoice price of Rs.120 each. Goods send 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

View Answer

Answer: (a) Rs.1,00,000

QN21. In the books of consignor, the profit of consignment will be transferred to:
(a) General Trading A/c
(b) General P/L A/c
(c) Drawings A/c
(d) None of these

View Answer

Answer: (b) General P/L A/c

QN22. Ram of Kolkata sends out 1,000 boxes to Y of Delhi, costing Rs.200 each. 1/10th of the boxes were lost in transit. 2/3rd of the boxes received by consignee is sold at cost + 25%. The amount of sales value will be:
(a) Rs.1,00,000
(b) Rs.1,50,000
(c) Rs.1,20,000
(d) Rs.1,40,000

View Answer

Answer: (b) Rs.1,50,000

QN23. X of Kolkata sends out goods costing Rs.80,000 to Y of Mumbai so as to show 20% profit on invoice value. 3/5th of the goods received by consignee is sold at 5% above invoice price. The amount of sales value will be:
(a) Rs.63,000
(b) Rs.60,000
(c) Rs.50,400
(d) Rs.40,000

View Answer

Answer: (a) Rs.63,000

QN24. X of Kolkata sends out certain goods at cost + 25%. Invoice value of goods sends out Rs.200,000. 4/5th of the goods were sold by consignee at Rs.1,76,000. Commission 2% upto invoice value and 10% of any surplus above invoice value. The amount of commission will be:
(a) Rs.4,800
(b) Rs.5,200
(c) Rs.3,200
(d) Rs.1,600

View Answer

Answer: (a) Rs.4,800

QN25. Ram of Kolkata sends out goods costing Rs.1,00,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. ½ of the balance goods were sold. The amount of Inventories reserve on consignment Inventories will be:
(a) Rs.4,500
(b) Rs.9,000
(c) Rs.11,250
(d) None

View Answer

Answer: (c) Rs.11,250

QN26. C of Bangalore consigned goods costing Rs.3,000 to his agent at Delhi. Freight and insurance paid by consignor Rs.100. Consignee’s expenses Rs.200. 4/5th of the goods were sold for Rs.3,000. Commission 2% on sales. Consignee want to settle the balance with the help of a bank draft. The amount of draft will be:
(a) Rs.2,740
(b) Rs.2,800
(c) Rs.3,000
(d) Rs.1,800

View Answer

Answer: (a) Rs.2,740

QN27. Out of the following at which point the treatment of “Sales” and “Consignment” is same:
(a) Ownership transfer.
(b) Money receive.
(c) Inventories outflow.
(d) Risk.

View Answer

Answer: (c) Inventories outflow.

QN28. If del-credere commission is allowed for bad debt, consignee will debit the bad debt amount to:
(a) Commission Earned A/c
(b) Consignor’s A/c
(c) Trade receivables (Customers) A/c
(d) General Trading A/c

View Answer

Answer: (a) Commission Earned A/c

QN29. A proforma invoice is sent by:
(a) Consignee to Consignor
(b) Consignor to Consignee
(c) Customer/Debtors to Consignee
(d) Customer/Debtors to Consignor

View Answer

Answer: (b) Consignor to Consignee

QN30. Which of the following statement is correct:
(a) Consignee will pass a journal entry in his books at the time of receiving goods from consignor.
(b) Consignee will not pass any journal entry in his books at the time of receiving goods from consignor.
(c) The ownership of goods will be transferred to consignee at the time of receiving the goods.
(d) Consignee will treat consignor as creditor at the time of receiving goods.

View Answer

Answer: (b) Consignee will not pass any journal entry in his books at the time of receiving goods from consignor.

QN31. 1,000 kg of apples are consigned to a wholesaler, the cost being Rs.3 per kg plus Rs.400 of freight, it is known that a loss of 15% is unavoidable. The cost per kg will be:
(a) Rs.5
(b) Rs.4
(c) Rs.3.40
(d) Rs.3

View Answer

Answer: (b) Rs.4

QN32. A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is Rs.12,500 were destroyed. 75% of the total consignment is sold by B at Rs.1,00,000. What will be the amount of commission payable to B?
(a) Rs.10,937.50
(b) Rs.10,000
(c) Rs.9,000
(d) Rs.9,700

View Answer

Answer: (a) Rs.10,937.50

QN33. Consignment A/c is prepared in the books of :
(a) Consignor
(b) Consignee
(c) Third Party
(d) None

View Answer

Answer: (a) Consignor

QN34. Goods sent on consignment Invoice value Rs.2,00,000, at cost + 331/3 %. 1/5th of the goods were lost in transit. Insurance claim received Rs.10,000. The amount of abnormal loss to be transferred to General P/L is:
(a) Rs.30,000
(b) Rs.20,000
(c) Rs.35,000
(d) Rs.25,000

View Answer

Answer: (b) Rs.20,000

QN35. X of Kolkata sends out 100 boxes to Y of Delhi costing Rs.200 each. Consignor’s expenses  Rs.4,000. Consignee’s non-selling expenses (incurred till goods were reached to godown) Rs.900 and selling expenses Rs.500. 1/10th of the boxes were lost in transit. 2/3rd of the boxes received by consignee were sold. The amount of consignment Inventories will be:
(a) Rs.7,200
(b) Rs.7,500
(c) Rs.7,000
(d) Rs.6,000

View Answer

Answer: (b) Rs.7,500

QN36. X of Kolkata sends out goods costing Rs.1,00,000 to Y of Mumbai at cost + 25%.  Consignor’s expenses Rs.2,000. 3/5th of the goods were sold by consignee at Rs.85,000. Commission 2% on sales + 20% of gross sales less all commission exceeds invoice value. Amount of commission will be:
(a) Rs.3,083
(b) Rs.3,000
(c) Rs.2,500
(d) Rs.2,000

View Answer

Answer: (a) Rs.3,083

QN37. Consignment Inventories will be recorded in the balance sheet of consignor on asset side at:
(a) Invoice Value
(b) At Invoice value less Inventories reserve
(c) At lower than cost price
(d) At 10% lower than invoice value

View Answer

Answer: (b) At Invoice value less Inventories reserve

QN38. Which of the following expenses of consignee will be considered as non-selling expenses:
(a) Advertisement
(b) Insurance
(c) Selling Expenses
(d) None of the above

View Answer

Answer: (b) Insurance

QN39. The consignment accounting is made on the following basis:
(a) Accrual
(b) Realisation
(c) Cash Basis
(d) None

View Answer

Answer: (a) Accrual

QN40. Goods sent on consignment Rs.7,60,000. Opening consignment Inventories Rs.48,000. Cash sales Rs.7,00,000. Consignor’s expenses Rs.20,000. Consignee’s expenses Rs.12,000. Commission Rs.20,000. Closing consignment Inventories Rs.3,00,000. The profit on consignment is:
(a) Rs.1,50,000
(b) Rs.1,40,000
(c) Rs.92,000
(d) None

View Answer

Answer: (b) Rs.1,40,000

QN41. X of Kolkata sends out 100 boxes to Y of Delhi costing Rs.100 each. Consignor’s expenses Rs.1,000. Consignee’s selling expenses Rs.500. 3/5th of the goods sold by consignee, ½ of the balance goods were lost in consignee’s godown due to fire. The value of abnormal loss will be:
(a) Rs.3,000
(b) Rs.2,200
(c) Rs.4,000
(d) None

View Answer

Answer: (b) Rs.2,200

QN42. X of Kolkata sends out 1000 boxes costing Rs.200 each to Y of Delhi. 1/10th of the boxes were lost in transit. 2/3rd of the remaining boxes sold by consignee at cost + 25%. The sale value will be:
(a) Rs.1,50,000
(b) Rs.1,40,000
(c) Rs.1,20,000
(d) Rs.1,00,000

View Answer

Answer: (a) Rs.1,50,000

QN43. Which of the following item is not credited to consignment account?
(a) Cash sales made by consignee
(b) Credit sales made by consignee
(c) Consignment Inventories
(d) Inventories Reserve on closing consignment Inventories

View Answer

Answer: (d) Inventories Reserve on closing consignment Inventories

QN44. Goods sent out on consignment Rs.2,00,000. Consignor’s expenses Rs.5,000. Consignee’s expenses Rs.2,000. Cash sales Rs.1,00,000, credit sales Rs.1,10,000. Consignment Inventories Rs.40,000. Ordinary commission payable to consignee Rs.3,000. Del-credere commission Rs.2,000. The amount irrecoverable from customer Rs.2,000. What will be the profit on consignment?
(a) Rs.38,000
(b) Rs.40,000
(c) Rs.36,000
(d) Rs.43,000

View Answer

Answer: (a) Rs.38,000

QN45. The commission received from consignor will be transferred to which account?
(a) General Trading
(b) General P/L
(c) Balance Sheet
(d) None of these

View Answer

Answer: (b) General P/L

QN46. X of Kolkata sends out 1,000 boxes to Y of Delhi costing Rs.20 each. Consignor’s expenses Rs.2,000. 4/5th of the boxes were sold at Rs.25 each. The profit on consignment will be:
(a) Rs.2,400
(b) Rs.2,000
(c) Rs.3,000
(d) Rs.3,500

View Answer

Answer: (a) Rs.2,400

QN47. If del-credere commission is allowed by consignor to consignee the bad debt treatment in the books of Consignor will be:
(a) Will not be recorded in consignor’s books
(b) Bad Debt will be debited in Consignor’s A/c
(c) Bad Debt will be charged to General P/L A/c
(d) Bad Debt will be recoverable along with credit sales

View Answer

Answer: (a) Will not be recorded in consignor’s books

QN48. The owner of the consignment Inventories is:
(a) Consignor
(b) Consignee
(c) Trade receivables
(d) None

View Answer

Answer: (a) Consignor

QN49. The nature of the consignment account is:
(a) Capital in nature
(b) Nominal in nature
(c) Realisation A/c in nature
(d) Bank A/c in nature

View Answer

Answer: (b) Nominal in nature

QN50. Rahim of Kolkata sends out goods of the invoice value Rs.2,00,000 to Ram of Delhi at cost + 25%. The amount of loading will be:
(a) Rs.50,000
(b) Rs.40,000
(c) Rs.30,000
(d) Rs.60,000

View Answer

Answer: (b) Rs.40,000

QN51. Goods sent to consignment at cost + 331/3 %. The percentage of loading on invoice price will be:
(a) 25%
(b) 331/3 %
(c) 20%
(d) None

View Answer

Answer: (a) 25%

QN52. The balance of goods sent out on consignment will be transferred to:
(a) General P/L
(b) General Trading
(c) Balance Sheet
(d) Capital A/c

View Answer

Answer: (b) General Trading

QN53. X of Kolkata purchased 1,000 boxes costing Rs.100 each. 200 boxes were sent out to Y of Delhi at cost + 25%. 600 boxes were sold at 120 each. The amount of gross profit to be recorded in general trading account will be:
(a) Rs.12,000
(b) Rs.17,000
(c) Rs.(3,000)
(d) None

View Answer

Answer: (a) Rs.12,000

QN54. In the books of consignee, the profit on consignment will be transferred to:
(a) General Trading A/c
(b) General Profit and Loss A/c
(c) Drawings A/c
(d) None of the above

View Answer

Answer: (d) None of the above

QN55. P of Faridabad sent out goods costing Rs.45,000 to Y of Delhi at cost + 331/3 %. 1/10th of goods were lost in transit. 2/3rd of the goods received, are sold at 20% above invoice price. The amount of sale value will be:
(a) Rs.54,000
(b) Rs.43,200
(c) Rs.60,000
(d) Rs.36,000

View Answer

Answer: (b) Rs.43,200

QN56. M of Kolkata sent out goods costing Rs.45,000 to N of Mumbai at cost + 331/3 %. 1/10th of goods were lost in transit. 2/3rd of the goods are sold at 20% above invoice price. ½ of the sales are on credit. The amount of credit sales will be:
(a) Rs.21,600
(b) Rs.18,000
(c) Rs.21,000
(d) Rs.22,500

View Answer

Answer: (a) Rs.21,600

QN57. A of Ahmedabad sent out certain goods so as to show a profit of 20% on invoice price. 1/10th of the goods were lost in transit. The cost price of goods lost is Rs.20,000. The invoice value of goods sent out is:
(a) Rs.2,50,000
(b) Rs.2,00,000
(c) Rs.2,25,000
(d) Rs.2,40,000

View Answer

Answer: (a) Rs.2,50,000

QN58. Ram of Delhi sends out goods costing Rs.2,00,000 to Krishna of Brindaban. Consignor’s expenses Rs.5,000. Consignee’s expenses in relation to sales Rs.2,000. 4/5th of the goods were sold at 20% above cost. The profit on consignment will be:
(a) Rs.26,000
(b) Rs.32,000
(c) Rs.26,200
(d) Rs.(6,000)

View Answer

Answer: (a) Rs.26,000

QN59. Over-riding commission is a commission payable to consignee by consignor for:
(a) For protecting himself from bad debt
(b) For making sales above specific price
(c) As good friend
(d) As loyalty payment

View Answer

Answer: (b) For making sales above specific price

QN60. A of Kolkata sends out 500 boxes to B of Delhi costing Rs.200 each. Consignor’s expenses Rs.5,000. 1/5th of the boxes were still in transit. 3/4th of the goods received by consignee, were sold. The amount of goods still in transit will be:
(a) Rs.20,000
(b) Rs.21,000
(c) Rs.21,200
(d) None

View Answer

Answer: (b) Rs.21,000

QN61. Consignment account is
(a) Real account
(b) Personal account
(c) Nominal account
(d) None of the above

View Answer

Answer: (c) Nominal account

QN62. In the books of consignor, the loss on consignment business will be charged to:
(a) Consignee A/c
(b) General Trading A/c
(c) General P/L A/c
(d) Bank A/c

View Answer

Answer: (c) General P/L A/c

QN63. Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs.2,00,000 at cost + 25%, with the instruction to sell it at cost + 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor?
(a) Rs.86,200
(b) Rs.70,000
(c) Rs.75,200
(d) Rs.76,800

View Answer

Answer: (c) Rs.75,200

QN64. X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Goods are to be sold at cost + 331/3 %. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be:
(a) Rs.2,40,000
(b) Rs.2,00,000
(c) Rs.3,00,000
(d) None

View Answer

Answer: (a) Rs.2,40,000

QN65. If consignor draws a bill on consignee and discounted it with the banker the discounting charges will be debited in:
(a) General P/L
(b) Consignment A/c
(c) Consignee
(d) Trade receivables

View Answer

Answer: (a) General P/L

QN66. X of Kolkata sends out goods costing Rs.3,00,000 to Y of Delhi. Commission agreement – 2% on sales + 3% on sales as del-credere commission. The entire goods is sold by consignee for Rs.4 lacs. However, consignee is able to recover Rs.3,95,000 from the Trade receivables. The amount of profit to be transferred to P/L as net commission by consignee will be:
(a) Rs.15,000
(b) Rs.22,000
(c) Rs.21,000
(d) Rs.20,000

View Answer

Answer: (a) Rs.15,000