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: (A)
2,88,000
Explanation: 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.