Consignment accounts

Problem 1: Sharma & Co. of Delhi consign goods costing Rs. 40000 to their agent, Agrawal of ag!"r, on which the# !a# freight ins"rance and charges Rs. $%00, drawing on him at &0 for Rs. '0000. (he# disco"nt the bill at ban) being charged Rs. '00 therefore, after two months the# recei*ed from their agent an Acco"nt Sales informing that the entire consignment has been sold for Rs. %%000, that e+!enses amo"nting to Rs. &00 ha*e been inc"rred and showing as a ded"ction the agreed commission of $, on the amo"nt reali-ed. A draft on the state ban) of .ndia was enclosed for the balance d"e. Show the /o"rnal entries and im!ortant ledger acco"nts in boo)s of both the !arties. Problem $: 0oswami sent on the consignment %00 to#s to 0!oal at a cost !rice of Rs. 40 each. 0oswami !aid Rs. 100 for the !ac)ing and freight and Rs. $00 for ins"rance in transit. 0oswami recei*ed b# a che2"e Rs. %000 from go!al as an ad*ance against the consignment. Afterwards 0oswami recei*ed an acco"nt sales from 0o!al in which following details were shown: 1. 0o!al has inc"rred Rs. 1%0 as 3ctroi d"t#, Rs. 40 for carriage and Rs. %00 as ad*ertising and selling other e+!enses. $. 0o!al has sold all the to#s at a !rice of Rs. %% each. '. 0o!al has charged commission at %, on the gross sale !roceeds. 0oswami recei*ed a ban) draft alongwith the acco"nt sales for the balance d"e from go!al. Pass the /o"rnal entries and o!en necessar# acco"nts in the boo)s of the consigner and consignee. Problem ': il)aml Co. 5td., 6omba# sent on Consignment 1000 !lastic chairs at cost !rice of Rs. $%0 each to Ramswami of Chennai. (he com!an# !aid Rs. $000 as freight and Rs. 1000 as ins"rance !remi"m while sending the chairs to Ramswami. Ramswami was entitled to a commission at 4, on the gross sale !roceeds. il)amal Com!an# drew a bill of e+change of Rs. 40000 on Ramswami as an ad*ance against the consignment. Ramswami acce!ted the bill and ret"rned to the com!an# which disco"nted the bill with its ban)ers for Rs. %&400. At the end of the #ear an Acco"nt Sales was recei*ed from Ramswami in which following details were shown: 1. 7%0 chairs sold b# Ramswami for Rs. $40000 $. 8+!enses inc"rred b# Ramswami were: Doc) charges Rs. '%0 Carriage Rs. %%0 Selling e+!enses Rs. 100

'. Commission charged b# Ramswami at the agreed rate. A 6an) Draft for Rs. 140000 was enclosed with the acco"nt sales b# Ramswami. Pass the necessar# /o"rnal entries in the boo)s of il)amal Co. 5td. and Ramswami also !re!are the ledger Acco"nts in the boo)s of the com!an#. Problem 4: 6harat Petrole"m 5td., Consigned 4000 litres of !etrol to 9erma 3il of Rai!"r at Rs. $4 !er litre. (he Com!an# !aid for freight and ins"rance Rs. 4000. 9erma 3il recei*ed the consignment and inc"rred selling e+!enses Rs. $%00. (he consignee sent an Acco"nt Sales mentioning a sale of %000 litres at Rs. '0 !er litre and remitted the amo"nt d"e b# a draft after ded"cting his e+!enses and commission : %,. ;e also re!orted that !etrol in hand was &%0 litres. Pass the <o"rnal entries and o!en necessar# acco"nts in the boo)s of 6harat !etrole"m 5td. Problem %: =ali) of ="mbai consigned 100 calc"lators to Patel of S"rat at a cost !rice of Rs. $00 each. =ali) inc"rred Rs. 1$%0 b# wa# of !ac)ing and freight charges and Rs.'%0 for ins"rance in transit. >hen Patel too) deli*er# at S"rat, he fo"nd that 40 calc"lators were stolen. ;e immediatel# informed =ali) abo"t this and =ali) s"bmitted to the ins"rance com!an# a claim for com!ensation. (he ins"rance com!an# !aid Rs. 4%00 to =ali) b# wa# of com!ensation. Patel sold %00 calc"lators at a !rice of Rs. $10 each. Patel s!ent Rs. 1$0 for carriage, Rs.&10 for 3ctroi d"t# and Rs. '00 for ad*ertising. Patel charged commission at 1, on the gross sale !roceeds and after ded"cting his e+!enses and commission, he sent the balance to =ali) b# a ban) draft. Pass the <o"rnal entries in the boo)s of =ali) and 5edger Acco"nts in the boo)s of both the !arties. Problem 4: =?s. 9idarbha (raders of Amra*ati dent on Consignment 100 table fans at cost !rice of Rs. 400 to =. P. electrical of 6ho!al. =?s. 9idarbha (raders s!ent Rs. 100 for freight and Rs. 400 for ins"rance in transit. As !er the terms of agreement =.P. 8lectricals was entitled to recei*e 7, ordinar# commission on all sales and 1, del credere commission on credit sales and effected b# him. >hen =.P. 8lectricals too) deli*er# at 6ho!al, he fo"nd that % table fans were damaged in transit. ;e informed =?s. 9idarbha (raders abo"t this and =?s. 9idarbha (raders claimed com!ensation from ins"rance com!an#. (he ins"rance com!an# admitted a claim for onl# Rs. 400 as com!ensation for the damages. Afterwards =?s. 9idarbha (raders recei*ed a Acco"nt sales from =.P. 8lectricals in which the following details were shown:

1@ 8+!enses inc"rred b# =.P. 8lecticals were Rs. $00 for carriage, Rs. 410 for 3ctroi d"t# and Rs. 140 for selling e+!enses. $@ =.P. 8lectricals has sold % damaged table fans at Rs. $%0 each on credit basis. ;e has also sold other 4% table fans at a !rice of Rs. %%0 each of which $% table fans has been sold for cash. '@ =.P. 8lectricals has charged commission at agreed rates. =.P. 8lectricals enclosed a ban) draft for the balance !a#able to =?s. 9idarbha (raders. 3"t of the credit sales effected b# =.P. 8lectricals, Rs. 100 t"rned o"t to be bad debts. Pass the /o"rnal entries and the 5edger Acco"nts in the boo)s of =?s. 9idarbha (raders and =.P. 8lectricals. Problem 7: 9i/a#, whose acco"nting #ear ends on '1?%?$00$, consigned 100 bags of wheat, each bag costing Rs. '00 to Rohan of Delhi on 1?4?$00$. ;e had !aid Rs. %00 towards freight and ins"rance 1% bags were in transit and on 4?4?$00$ the consigner has recei*ed Rs. 1000 on acco"nt of the damaged bags from the .ns"rance Com!an#. Rohan too) deli*er# of the goods on 10th A!ril, $00$ and immediatel# acce!ted a bill drawn on him for Rs. $0000 for 40 da#s. 3n '1?%?$00$ the consignee re!orted that: i@ 70 bags were sold at Rs. '%0 !er bagA ii@ (he damaged bags were sold at Rs. 110 !er bagA and iii@ ;e had inc"rred the following e+!enses: 0odown rent Rs. 700 Clearing charges Rs.1000 Carriage o"twards Rs. '00 ;e is entitled to a commission at 10, on the sale !roceeds of all goods e+ce!ting damaged goods. Ass"ming that Rohan remits the balance b# ban) draft on '1?%?$00$. Show Consignment Acco"nts and ConsigneeBs Acco"nt in the boo)s of 9i/a#. Problem 1: Asho)a =ills, ag!"r consigned %000 )gs of 9anas!ati 0hee to =?s. Sarita & Co. of Patna. 8ach )g. ghee costs Rs. 40. Asho)s mills !aid Rs. %00 as carriage, Rs. $%00 as freight and Rs. 400 as ins"rance in transit. D"ring the transit %00 )gs were accidentall# destro#ed for which the .ns"rance Com!an# !aid directl# to the Consignor Rs. 1'000 in f"ll settlement of the claim. After three month from the date of the consignment of the goods to Patna, =?s. Sarita & Co. re!orted that '%00 )gs of ghee was sold : Rs. %% !er )g. and e+!enses being: on godown rent Rs. 1000 and on Salesman Salar# Rs.7%0. =?s. Sarita & Co. are entitled to a commission on sales. =?s. Sarita & Co. also re!orted a loss of $0 )gs. d"e to lea)age. Pre!are necessar# 5edger Acco"nts in the boo)s of both the !arties.

Problem &: C"mar brothers of ag!"r sent on consignment 100 bed sheets at an in*oice !rice of Rs. 10 each to =?s. Ra/ and Sons of anded. (he in*oice !rice of the bedDsheets is fi+ed b# ta)ing $0, !rofit on the in*oice !rice. C"mar 6rothers !aid Rs. '00 for !ac)ing, Rs. 100 for freight and Rs. $00 for ins"rance while sending the bed sheets to =?s. Ra/ and Sons. C"mar brothers drew a bill of Rs. 1000 for $$ months on =?s. Ra/ and Sons as an ad*ance against the consignment which was d"l# acce!ted b# =?s. Ra/ and Sons. C"mar 6rothers disco"nted the bill for Rs. 7140. =?s. Ra/ and Sons sent an acco"nt Sales to C"mar 6rothers at the end of the #ear. (he Acco"nt Sales incl"ded the following information:D 1. =?s. Ra/ and Sons has inc"rred e+!enses as "nder: 3ctroi d"t# Rs. 400 Carriage Rs. '00 Sellers Salar# Rs. %00 $. =?s. Ra/ and Sons has sold 4%0 bed sheets at a !rice of Rs. 100 each. '. =?s. Ra/ and Sons has charged commission at an agreed rate of 1, on the gross sale !roceeds. =?s. Ra/ and Sons sent a ban) draft for the balance !a#able to C"mar 6rothers. Pre!are 5edger Acco"nts in the boo)s of C"mar 6rothers and =?s. Ra/ and Sons. Problem 10: =?s 9ina#a) Agencies of asi) sent consignment of $000 bo+es of dr# fr"its costing Rs. %00 !er bo+ to =?s Cal#ani (raders, ag!"r, and !aid railwa# freight Rs. 1%000, carting Rs. 4000 and other e+!enses Rs. '0000. (he goods were charged at !roDforma in*oice !rice so as to show a !rofit of $0, on sales. Consignee is entitled to a commission of 1, on total sales and '?$, DelDcredere commission on credit sales. ;e acce!ted a bill of Rs. $%0000 o"t of which cash sales were for 1. 1400 bo+es were sold for Rs. 1$0000 o"t of which cash sales were for Rs. %00000. $. 8+!enses inc"rred: Ad*ertisement Rs. 1%00 Disco"nt Rs. 4000 3ther 8+!enses Rs. '%00 '. Commission is charged as !er terms. =?s Cal#ani (raders sent a ban) draft for Rs. 440000 along with Acco"nt Sales. Pre!are: Ea@ Consignment acco"nt, ConsigneeBs acco"nt and Consignment Stoc) Reser*e Acco"nt in the boo)s of =?s 9ina#a) Agencies. Eb@ ConsignorBs Acco"nt and DebtorBs Acco"nt in the boo)s of =?s Cal#ani (raders. Problem: 11 9ishal (raders ="mbai consigned to =?s Ali & Sons ag!"r 10 ceiling fans costing Rs. 400 each at $0, abo*e cost and !aid Rs. 400 for ins"rance, Rs. 100 for carriage

and Rs. 400 for other e+!enses. =?s Ali & Sons acce!ted a bill for Rs. 11000 and iss"ed a che2"e for Rs. 4000 after recei*ing the consignment. 9ishal traders disco"nted the bill for Rs. 17100 and in d"e co"rse recei*ed an acco"nt sales showing the following details: 1. Credit Sales of 40 ceiling fans at Rs. 7%0 each. $. Cash Sales of $% fans at Rs. 100 each '. 8+!enses inc"rred b# =?s Ali & Sons: 0odown Rent Rs. 4%0 Carriage Rs. 1%0 Commission Rs. $%00 4. =?s Ali & Sons too) % fans for their own "se at an agreed of Rs. 740 each. %. =?s Ali & Sons recei*ed Rs. $&000 from the debtors, allowed Rs. 400 as disco"nt and inc"rred bad debts Rs. 400. 4. =?s Ali & Sons remitted the balance d"e b# a ban) draft sent with the acco"nt sales. Pass the /o"rnal entries in the boo)s of both the !arties and !re!are: i@ Consignment Acco"nt in the boo)s of 9ishal (raders. ii@ 9ishal (raders acco"nt in the boo)s of =?s Ali & Sons. Problem 1$: Singh cotton traders of Amra*ati consigned '00 bales of cotton to Shri Sat!al of Delhi on F1?1?$001. (he cost !rice was Rs. &00 !er bale b"t the consignment in*oice was made o"t at fig"re to show a gross !rofit of $, on sales. Shri Sat!al re!orted on '1?'?$001 that he had sold G of the consignment at !rofit of $%, on sales and he inc"rred Rs. 1%00 as freight charges and Rs. &00 as godown rent. Singh cotton traders s!ent Rs. 1000 as e+!enses in dis!atching goods Shri sat!al was entitled to commission of 4, on sales and ', on the net !roceeds Ei.e. sales less his e+!enses and commission@ as bon"s. 3n '1?'?$001 Shri sat!al sent a ban) draft for the amo"nt d"e from him. Pre!are the 5edger Acco"nts in the boo)s of singh cotton traders and Shri Sat!al.

Problem 1': 6ansilal and com!an# of agra consigned 1000 tins of !"re ghee costing Rs. 10 !er tin to their agent Rane ghee stores ="mbai. (he in*oice !rice of the ghee was )e!t Rs. 100 !er tin. (he agents sold for cash 400 tins : Rs. 100 and 400 tins : Rs. 10% on credit. 6ansilal and com!an# !aid Rs. 100 as freight and Rs. 400 for s"ndr# e+!enses. (he# drew a three months bill of Rs. %0000 on Rane ghee stores which was sent to 6ansilal and Co. after acce!tance. Rane ghee store sent:

Carriage Rs.1$0 3ctroi H Rs. 10 Storage Rs. 110 S"ndr# 8+!enses Rs. $40 Rane 0hee stores are entitled to get a commission of %, and $, del crede commission on total sales. ;e sent his acco"nt sales to 6ansilal and Co. 3ne month after all debtors e+ce!t one for Rs. 400 !aid their d"e amo"nt to Rane ghee stores. Io" are re2"ired to !re!are: i@ Consignment acco"nt ConsigneeBs Acco"nt in the boo)s of Consignor. ii@ Consignor Acco"nt Commission acco"nt, debtors acco"nt and 6ad debts acco"nt in the boo)s of consignee. Problem 14: Ren")a 0arments of Rai!"r sent '00 Read#Dmade shirts on consignment to Ambi)a Agencies of Amra*ati. Ren")a 0arments s!ent Rs. 1$00 on !ac)ing and ins"rance. (he cost of each shirt was Rs. $00 b"t it was in*oiced $0, abo*e the cost. '0 shirts were lost in transit and .ns"rance Com!an# admitted a claim for Rs. '000 onl#. Ambi)a Agencies !aid freight Rs. 1400, carriage Rs. 400, 3ctroi Rs. $00, 0odown Rent Rs. $40. Abmi)a agencies sold $$0 shirts for Rs. '40 each on credit. Ambi)a Agencies was entitled to a commission at %, on in*oice !rice and $0, of an# e+cess reali-ed on the in*oice !rice and $, of Del credere commission. Ambi)a Agencies acce!ted a bill drawn b# Ren")a 0arments for Rs. '1000 and remitted the balance b# draft along with an Acco"nt Sales. Io" are re2"ired to !re!are necessar# 5edger Acco"nts in the boo)s of Ren")a 0arments and Ambi)a Agencies. Problem 1%: 3n 10?4?$000 Ah"/a and Com!an# Consigned %000 ta!e cassettes costing Rs. $0 each to Rathi and Co., the Consignee. (he Proforma .n*oice is !re!ared to show a !rofit on sales !rice at the rate of $0,. (he consignee is not allowed to sell cassettes below the in*oice !rice. (he Consignor !aid freight and ins"rance Rs. $%00. 3n $1?4?$000 the consignee on recei*ing the goods !aid for o"tward carriage Rs. %%0. ;e also acce!ted the bill drawn b# the consignor Rs.%0000 for the ' month !eriod. 3n chec)ing the goods recei*ed he fo"nd that 100 cassattes were damaged and not fit for sale. (his fact was re!orted to the consignor. (he consignor claimed for damages and the ins"rance com!an# settled the claims for Rs. 1%00. 3n '0?7?$00 the consignee re!orted the consignor as below: 1. ;alf of the goods recei*ed were sold at rs. '0 !er "nit. $. 3neDfo"rth of the goods recei*ed were sold at in*oice !rice. '. (he balance in stoc).

(he Consignee was to recei*e a commission at the rate of ', on sales at in*oice !rice and at the rate of $, on sales abo*e in*oice !rice. Show the necessar# 5edger Acco"nts in the boo)s of both the !arties. Problem 14: .nsaf Ali & Co. of Allahbad consigned 100 !ress"re coo)ers to =?s. 6ande Ali of ag!"r. (he goods were in*oiced at Rs. '00 so as to #ield a !rofit of %0, on cost. .nsaf Ali& Co. inc"rred Rs. $000 on freight and ins"rance. =?s. 6ande Ali inc"rred Rs.1000 on clearing and cartage and Rs.1400 on rent. =?s. 6ande Ali sold %0 !ress"re coo)ers for cash at Rs. '$0 !er coo)er and $0 coo)ers on credit Rs. '%0 !er coo)er. ;e retained his commission at the rate of 4, Eincl"ding 1, for the del credere arrangements@ and remitted the balance d"e. =?s. 6ande Ali informed that 10 coo)ers were damaged on acco"nt of bad !ac)ing and that he wo"ld be able to sell them onl# Rs. 140 !er coo)er. A debtor for Rs. $000 to whom the goods were sold b# =?s. 6ande Ali became insol*ent and onl# %0 !aise in a Re. was reco*ered. Pre!are: 1. Consignment acco"nt consignee acco"nt goods sent on consignment acco"nt and consignment stoc) acco"nt in the boo)s of .nsaf Ali and Co. $. ConsignorBs acco"nt and consignment debtors acco"nt in the boo)s of =?s 6ande ali.