Question

i) Which is the first payment made under piecemeal distribution of cash on
dissolution of a firm ?
j) What is an Account Sales ?
k) What is proforma invoice ?
1) What are abnormal losses in case of consignment?

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Answer 1

Answer:

proforma invoice : goods are consigned by a consignot to a consignee at a higher price is known as invoice price

Abnormal loss : are tge loss occired unnatural or unexpected sucha as fire , flood , earthquake and war

Explanation:

Answer 2

Answer:

1. The first payment made under the piecemeal distribution by the firm is to the third parties and other liabities including deficiency from it's profits. In case the money is not enough to pay off such third parties, money from the partner's capitals is transferred to such accounts.
2. ACCOUNT SALES: Account sales is a statement maintained in the books of account to keep a check on various informations of the business. It includes the quality and quantity of goods, price of goods, sales per unit,commission if any, total sales expenses occured during the projects etc.
3. PROFORMA INVOICE: Proforma invoice as the name suggests is a preliminary bill which is issued by the seller to request for the payment in lieu of the goods and services before they are actually supplied to the buyer. Such bills generally includes the total payable amount of the goods, description of the goods, mode of transaction etc.
4. The abnormal loss in case of consignments means the accidental loss occured due to unpredictability of the situation. Some of such causes are as follows:

• Theft,
• Fire,
• Natural calamities or act of God like flood, earthquakes, tsunami,
• Carelessness of the authorities involved,
• Lost in transit,
• War and so on.

In such cases, the loss is calculated as an unsold stock in consignment. In the books of accounts,it is credited to the Consignment A/C and debited to Abnormal Loss A/C and then transferred to the General P/L A/C for balancing the sheet.