PRACTICAL QUESTIONSCost Price Method1.C of Calcutta sent 100 bicycles to B of Mumbai to be sold on consignment basis on 1.1.2016. The cost of eachbicycle was 800, C incurred * 500 for freight, 3 750 for cooli charges and 3 850 for insurance premium.On 31.12.2016, C received on Account Sales from B, which showed that he sold 80 bicycles @ 1,200 each andafter deducting his commission and expenses amounting to 20,000, he sent the balance amount by a draft with theAccount Sales. According to contract, B is entitled to get ordinary commission @ 10% and del credere commission@ 5% on sale proceeds. Show important Ledger Accounts in the books of both the parties.
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