Question

Prepare consignment account ​

Answer 1

Answer:

1. Cost of goods sent on consignment.
2. With expenses paid by the consignor.
3. Expenses paid by consignee by self or on behalf of the consignor.
4. Commission on consignment.

Answer 2

Answer:

Explanation:

Working notes

1. Goods sent on consignment = 10,00,000 [1,000 × 1,000}

2.Consigner expense = 50,000 [10,000 + 30,000 + 10,000]

3.Consignee expense = 31,500 [8,500 + 17,000 + 6,000]

4.To Consignee commission = 98,000 [9,0,000 × 10%]

5.Sales proceed = 700 × 1,400 = 9,80,000

6.Loss in transit = 52,500

50 × 1,000 = 50,000

(+) Consigner expense = ⁵⁰/₁₀₀₀ × 50,000 = 2,500

7.Consignment inventory = 2,64,000

150 × 1000 = 1,50,000

(+) Consigner expense = 7500

(+) Consignee expense = 1500

(+) Goods i transit = 1,00,000

(+) Consigner expense = 5,000