Question

Oswal Mills, Ludhiana, consigned 5,000 kgs. of Vanaspati Ghee to Rajender Dealers of Panipat. Each kg. Gheecost Rs. 8. Oswal mills paid Rs. 50 for carriage, Rs. 250 for freight and Rs. 200 for insurance-in-transit. Duringtransit 500 kgs, were accidently destroyed for which insurance company paid directly to the consignors Rs. 2,500in full settlement of the claim. After three months from the date of consignment of goods to Panipat, RajenderDealers reported that 1.500 kgs. of Ghee was sold at Rs. 9.50 per kg., Expenses being : on godown rent Rs. 500and on salesmen's salary Rs. 750. Rajender Dealers are entitled to a commission of 5% on sales. They alsoreported a loss of 20 kgs due to leakage Prepare the consignment account and accounts of both consignee andconsignor in their books of accounts.[Ans.Profit:Rs. 72.44., Abnormal loss : Rs. 4050; Consignment Stock:Rs. 24,235.]​

Answer 1

Answer:

.Profit : Rs. 72.44.,

Abnormal loss : Rs. 4050;

Consignment Stock : Rs. 24,235.

Explanation:

CONSIGNMENT ACCOUNT

• Rs 40,000 in goods on consignment
• 50-ton carriage
• 250 for freight
• 200 dollars in transit insurance
• 500$/month
• 700 for a salesperson
• The commission is 5% of the total amount of 14250 712.50.
• 323.50 profit

A total of 42,376 people were involved in the project.

• Workings :
• 1.
• The abnormal loss was computed in the following way:
• Cost of 5000kg @ RS 8…………………40,000
• Freight…………………………………..250
• Carriage…………………………………50
• Insurance………………………………..200
• TOTAL…………………………………40,500
• As a result, the cost of the 500 kg thrown away is (40,500/5000) 500=
• Rs 4050.
• As a result, the cost of items in an exceptional loss is
• Rs 4050.
• 2. The closing stock value was calculated as follows:
• 5000 kg @ RS 8 =.............40,000
• Freight…………………………………..250
• Carriage…………………………………50
• Insurance………………………………..200
• Rent……………………………………..500
• TOTAL COST OF GOODS.....................41,000
• 41,000/5,000 = Rs 8.2 2,980 kg=
• Rs 24,436
• cost per kg value of closing stock
• Closing stock number of goods
• 5,000 kg in total
• Fewer luxuries.. (500 kg)
• Sold... (1500 kg)
• The information was leaked.. (20 kg)
• 2980 kilogrammes

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