Mr. Black of Chennai purchased, 10,000 pieces of sarees at Rs.100 per saree. Out of these 6,000 sarees
paid Rs.3,000 for packing and freight. Mr. White sold 5,000 sarees at Rs.125 per saree and incurred
were sent on consignment to Mr. White of Delhi at the selling price of Rs. 120 per saree. The Consignor
Rs.1,000 for selling expenses and remitted Rs 5,00,000 to Chennai on account. Mr. White is entitled to a
commission of 5% on total sales plus a further commission at 20% of surplus price realized over invoice
price. You are required to prepare Consignment Account And the account of Mr. Black in the books of
Mr. White
Answers
Answer:
W. No. 1 :
Calculation of Abnormal Loss
Pur. Cost = 1×3000 = 3,000
Exps. = 1×500 = 3,500
3,500
W. No. 2 :
Calculating Unsold Stock
Pur. Cost = 29×3000 = 87,000
Consinger Exp. = 29×500 = 14,500
Consignee Exps. =
399
1,99500
×29 = 14,500
=
1,16,000
Explanation: