Modi textiles, delhi consigned to vinod enterprises, calcutta 100 cotton bales the in voice price of each bale was rs 1,500 each which includes 20% profit on invoice price . the consignor paid rs 2,500 for insurance and rs 4,000 for carriage and freight. the consignee received cotton bales and sold 75 bales for cash and realised rs 1,12,500. he incurred rs 1,800 on godown rent and was allowed 10% commission on sales .5 cotton bales were spoiled in godown and they are to be valued at 50% depreciation . show consignment account in the books of modi textiles.
Answers
Modi textiles, delhi consigned to vinod enterprises, calcutta 100 cotton bales the in voice price of each bale was rs 1,500.
Invoice price of goods sent on consignment + expenses incurred by consignor
Total amount for 100 quantity = 1,50,000 + 6,500 = Rs. 1,56,500
for 100 quantity Rs. 1,56,500
for 1 quantity Rs. 1,56,500/100 = Rs. 1,565
Valuation of inventory
Quantity Amount
100 1,50,000
6,500
-------------------
1,56,500
100
1 1,565
Abnormal loss
For 5 bails 1,565 = 5 × 1,565 = 7825
50% of depreciation = 50/100 × 7825 = 3912.5
7825 - 3912.5 = 3912.5
3912.5 - 5 × 150 = 3162.5
The excess of cost price in invoice price is Rs. 300.