CA CPT June 2015 Question Paper Fundamentals of Accounting for online practice

13,20038.5,000 meters of cloth was sent out on consignment basis at an invoice price of Rs 30 per meter whichwere purchased by consignor at a price of Rs. 20 per meter consignor’s expenses amounted to Rs. 5,500consignee’s expenses amounted to Rs 2,000. Consignee’s sold 4,000 meters at Rs. 40 per meter. He isentitled to a commission of 5% on total sales plus a further 20% of any surplus realized above theinvoice price. Due to fall in the market price, the inventory of cloth is to be reduced by 10%. Calculatedthe profit on consignment?