A of Surat consigns goods to B of Jaipur to be sold at or above invoice price. B is entitled to
get a commission of 8% on sales at invoice price plus 25% of any surplus price realized. B
accepted a bill of exchange drawn by A amounting to 50% of the invoice price.
In the year 2013 goods consigned by A were invoiced at Rs. 2,50,000. These goods cost to A
Rs. 2,00,000 (including freight). Sales made by B during the year amounted to Rs. 2,35,000. At
the end of the year goods unsold with B represented an invoice value of Rs. 60,000. During the
year, A had received from B Rs. 40,000 by bank drafts, certain remittances being in transit on
31st Dec. 2013. Prepare necessary ledger accounts in the books of both the parties. Also show
how will the consignment stock appear in the Balance Sheet.