E T B I C MBA AGU

Consignment Accounts

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.

asked Feb 19, 2015 in Consignments by Annet (31 points) 1,479 views

1 Answer

+2 votes
 
Best answer

In case of any doubt, please don't hesitate to clear your doubts.

answered Feb 19, 2015 by jbsclasses (3,959 points)
selected Mar 14, 2015 by Annet

Sir, can you solve one question for me of Branch Account. (Q) (Collection from debtors not given) Sarda Brothers Bombay has a branch at Nagpur. All goods required for sale at Nagpur branch are supplied from Bombay at cost plus25% and all cash received at the branch is banked daily in the Head office account opened in a Bank at Nagpur. From the following particulars, give the branch account and branch debtor's account. Particulars Rs stock (1.1.2007) 79,000 debtors(1.1.2007) 1,13,000 petty cash(1.1.2007) 900 returns from customers 4,000 goods invoiced to branch 2,50,000 returns goods to head office 10,000 bad debts 1,000 cash sales 14,000 branch expenses paid by head office rent 14,000 salary 15,000 sundries 7,000 allowances given 4,500 petty cash expenses at branch 2,400 total sales 3,49,000 remittances to branch for petty cash 2,800 stock(31.12.2007) 84,000 debtors (31.12.2007) 1,95,1000

8% commission is to be paid on sales at Inoice Price.  B is to get 25% of any price realised over and above sales at invoice price.

1.  B is entitled to get a commission of 8% on sales at invoice price plus 25% of any surplus price realized.

 

2.  Sales made by B during the year amounted to Rs. 2,35,000.

 

 

Invoice price of goods consigned       = Rs.250000

Less Invoice price of closing stock     = Rs.  60000

Sales at Invoice Price                          = Rs.190000

Commission @ 8% on Rs.190000

 

Total Sales made by B during the year amounted to   =  Rs.235000

Less Invoice Price of total sales                                       =  Rs. 190000

Amount of Surplus price realised                                     =   Rs.   45000

Commission @ 25% on Rs.45000

Please post you question on Branch Accounts separately.
Thankyou so much Sir !!!
My pleasure.
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