Question

Cost Price Method
1. C of Calcutta sent 100 bicycles to B of Mumbai to be sold on consignment basis on 1.1.2014. The cost of each
bicycle was 800, C incurred 500 for freight, R 750 for cooli charges and 3 850 for insurance premium.
On 31.12.2014, C received on Account Sales from B, which showed that he sold 80 bicycles @ 1,200 each and
after deducting his commission and expenses amounting to 20,000, he sent the balance amount by a draft with the
Account Sales. According to contract, B is entitled to get ordinary commission @ 10% and del credere commission
@5% on sale proceeds. Show important Ledger Accounts in the books of both the parties.
2. On 1st January, 2014 Sadhan Sen of Sodepur sent 1,000 units of silk goods to Biren Bose of Berhampur The goods
cost 75,000 to Sadhan and these were sent on consignment basis. Sadhan had to incur an expenditure of 1,500
on the goods. On the due date, the goods reached the destination and Biren had to spend on the goods 1,000 on
various accounts.
On 30th September, 2014 an Account Sales was received by Sadhan showing that 750 units were sold at * 150 each.
Biren charged 5% ordinary commission and 7/2% del credere commission. The consignee sent with the Account
Sales a sight draft for 90,000 only.
You are required to prepare the Account Sales and the necessary Journal entries and Ledger accounts in the books
of both the parties.
3. On 1st January, 2015, C of Calcutta sends 1,000 boxes of clothing to M of Madras on consignment basis. The goods
in each box cost *200. C pays railway freight and insurance 500 and draws upon M a bill for 10,000 which is
duly accepted.
On 2nd April, 2015, M forwards an Account Sales to showing that 500 boxes have been sold at 250 per box
while 300 boxes were sold at * 260 per box and 200 boxes remained in stock unsold. The expenses incurred by M​

Answer 1

Answer:

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Explanation:

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Answer 2

Explanation:

C of Calcutta sent 100 bicycles to B of Mumbai to be sold on consignment basis on 1.1.2014. The cost of each

bicycle was 800, C incurred 500 for freight, R 750 for cooli charges and 3 850 for insurance premium.

On 31.12.2014, C received on Account Sales from B, which showed that he sold 80 bicycles @ 1,200 each and

after deducting his commission and expenses amounting to 20,000, he sent the balance amount by a draft with the

Account Sales. According to contract, B is entitled to get ordinary commission @ 10% and del credere commission

@5% on sale proceeds. Show important Ledger Accounts in the books of both the parties.