Question

c) Max Chemical Works consigned 700 boxes of medicines to Raja Medical Stores at an invoice price of 3 1,68,000 which was 20% above o the actual cost price and paid * 14,000 for Insurance and freight. In the course of transit, 50 boxes were lost and the transporter paid * 22,000 for the loss. The Consignee took the delivery of the remaining boxes and incurred 9,750 for carriage. The Consignee sold 500 boxes for * 1,60,000 and incurred 6,000 for selling expenses. The Consignee is entitled to a commission of 6% on gross sale
s. Show the Consignment Account. ​

Answer 1

Explanation:

Here is the right answer

Answer 2

Here is the consignment account for the question:

                           

                                     Consignment Account

Particulars                                Amount     Particulars                      Amount

To goods sent on                                        By goods sent on

consignment a/c (700 box)     1,68,000  consignment a/c (loading) 28,000

To cash a/c                                14,000       By Abnormal loss            11,000

To Raja Medical store:                                 (50 box)    

carriage expenses (650 box)   9,750         By Raja medical store  1,60,000

selling expenses                       6,000         ( sales - 500 box)

To commission                          9,600         By inventories on

To inventories reserve a/c       6,000          consignment a/c           41,250

To general profit & loss a/c     26,900

Total                                         2,40,250                                          2,40,250