QUESTION 36
The Ramesh Oil Mills, Mumbai, consigned 40.000 lb of castor oil (in 10 Ib tins) to B.N. Chatterjee, Surat on 1st April
2003. The cost of oil was Rs. 2 per Ib. The consignor paid Rs. 10,000 as freight and insurance. During transit. 50 tins
were totally destroyed for which the insurance company paid directly to the consignors Rs. 900 in full settlement of the
claim.
B.N. Chatterjee took delivery of the consignment on 10th April and accepted a bill drawn on him by Ramesh Oil Mills
for Rs. 20,000 for three months. On June 30, 2003 B.N. Chatterjee reported that 35,000 lb were sold at Rs. 3 per Ib the
expenses being-
Godown rent Rs.400; Advertisement Rs. 2,000; Salaries of salesmen Rs. 4,000. B.N. Chatterjee charged a commission
of 3 per cent plus 3 per cent del credere. He sold Rs. 19,000 worth of oil, the remaining stock, to X & Co. who were
declared bankrupt after two months and only 50 paise per rupee was realised from them.
Prepare necessary ledger accounts in the books of the consignor.
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Answer:
5000
Explanation:
50×100=5000
1×500×5÷10=2
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