Question

63. A Ltd., manufacturers and dealers in edible oil, consigned to their Bangalore agent, 1,000 crates of oil (each crate containing 12 one-kilo sachets). The consignment was sent at 20% over the cost price of 30 per kilo. A two months' bill was drawn on the agent for 80% of the value of the consignment which was met on maturity. Expenses incurred by the company by way of freight and insurance came to 12,000. The agent received the consignment by lorry and sold 900 crates at a profit margin of 25% on his cost (excluding consignor's expenses). He found that 500 sachets had got damaged in transit. A Ltd. accepted this as a normal loss and these were sold to consumers at 20 per sachet. The insurance company settled the loss claim for *2,500. The agent incurred expenses of 5,000 on his own account (unconnected with the liability under the agreement) and 3,000 on consignor's account. He is entitled to a commission of 5% on sales effected. The agent remitted the balance due by him to the company. Draw the accounts in the books of A Ltd. to record the above transactions. [C.A., Inter.]​

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