Accountancy, asked by vasuj4900, 4 months ago

(a) Raj of Gwalior consigned 15,000 kgs of Ghee at 30 per kg to his agent Siraj at Delhi. He spent 5 per kg as freight and insurance for sending the Ghee at Delhi. On the way 100 kgs. of Ghee was lost due to the leakage (which is to be treated as normal loss) and 400 kgs. of Ghee was destroyed in transit. 9,000 was paid to consignor directly by the Insurance company as Insurance claim.

Siraj sold 7,500 kgs. at 60 per kg. He spent 33,000 on advertisement and recurring expenses.

You are required to calculate :

(i) The amount of abnormal loss.

(ii) Value of stock at the end and

(iii) Prepare Consignment account showing profit or loss on consignment, if Siraj is entitled to 5% commission on sales.​

Answers

Answered by DrakeDarsh
30

Answer:

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Answered by steffiaspinno
17

(i) The amount of abnormal loss is ₹14,000

To calculate abnormal loss, Total units lost in abnormal loss = 400 * (cost per unit = ₹30 + freight = ₹5)

= 400 * 35 = 14,000

(ii) Value of stock at the end is ₹2,46,690

To calculate closing stock,

particulars                                                  quantity                      amount

goods sent on consignment                      15,000                        4,50,000

add: expenses of consignor                                                          +75,000

less: normal loss                                          -(100)

                                                                    14,900                          5,25,000

less: abnormal loss                                      -(400)                           -(14,000)

                                                                     14,500                         5,11,000

less: goods sold                                          -(7,500)                        

                                                                      7,000                           5,11,000

Closing stock = 5,11,000 / 14,500 * 7,000

=2,46,690

(iii) Here is the consignment account:

Particulars                               amount       particulars                    amount

To goods sent on                                         By Siraj                        4,50,000                      

consignment                           4,50,000      By abnormal loss          14,000

To bank (freight)                      75,000         By closing stock         2,46,690

To Siraj (expenses)                  33,000

To Siraj (commission)              22,500

To profit                                   1,30,190

Total                                         7,10,690                                              7,10,690

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