Question

ILLUSTRATION OAjay of Mumbai consigned to Vijay of Delhi,goods to be sold at invoice price which represents 125% of cost. Vijayis entitled to a commission of 10% on sales at invoice price and 25% of any excess realised over invoice price. Theexpenses on freight and insurance incurred by Ajay were 10,000. The account sales received by Ajay shows thatVijay has effected sales amounting to 31,00,000 in respect of 75% of the consignment. His selling expenses to bereimbursed were 8,000. 10% of consignment goods of the value of 12,500 were destroyed in fire at the Delhigodown and the insurance company paid 12,000 net of salvage. Vijay remitted the balance in favour of Ajay.Prepare consignment account and the account of Vijay in the books of Ajay along with the necessary calculations.O SOLUTIONSOLUTION​

Answer 1

Explanation:

this is correct answer of question

Answer 2

Answer:

Rs. 10,937.50

Explanation:

Here,given in question

10% of the consignment's goods, with an invoice value of Rs. 12500, were destroyed.

so, total goods sent out on consignment in invoice price =12500×100/10=Rs125000

Sales (75% of 125000)=93750

10%on sale at IP=10% of 93750= 9375

25% of surplus realized = 25% of (100000- 93750)= 1562.5

Total commision payable= 9375+1562.5= 10937.5

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