Raghav of Amritsar consigned 40 Yamaha Motor Cycles to Sandeep of Ludhiana. Each Motor
Cycle costs * 25,000 to Raghav. He paid * 18,000 as carriage and other expenses. The consignor
drew a bill of exchange for 3,00,000 which was later discounted at 2,82,000. The consignee
rendered an account sales showing.
(1) 22 Motor Cycles sold at 32,000 each
(ii) 18 Motor Cycles sold at 30,000 each
(iii) Freight and cartage * 12,000
(iv) Transit Insurance 2,500
(v) Commission @ 8% on sales.
The consignee sent a bank draft for the balance. Give journal entries and ledger accounts in the
books of Raghav.
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