Ramesh consegnor 2,000 MT of chemicals at a cost of 7 800 per MT te John. Ramesh paidtreighi und insurance charges of e 20,000. Of the ahove 500 MT of chemicals were destroyed hy tire during transit. John cleared the halance of 1,500 MT of chemicals and wk in MT at un average price of 1,000 per Mr, John incurred the following éxpeases. Godown Rent 75,000, Insurance 73,00), Clearing Charges 7 4,50. Insurance etaim received ugainst tire 4,0,000 after adrmitting the salvage value of Stock destroyed by fire at ? 10,000. John was entirled to a commission of 10% on sale proceeds. John sends the halance to Ramesh after adjusting his commissian and expenses out of the sale praceeds. P'repare a Consignment Account and John's Account in the book of Ramesh. COACHEN
Answers
Answer:
Closing stock (in numbers) = Opening stock − Goods lost in transit − Goods sold
= 2,000 − 500 − 1,000
= 500
Cost price of closing stock = number of closing stock × Cost price per unit
= 500 × 800
= 4,00,000
Consignor's non recurring expenses for closing stock = 20,000 ×
2,000
500
= 5,000
Consignee's non recurring expenses for closing stock = (clearing carges ×
1,500
500
) + salvage charges
= (4,500 ×
1500
500
) + 10,000
= 11,500
Therefore,
Value of closing stock = Cost price + Consignor's expenses + Consignee's expenses
= 4,00,000 + 5,000 + 11,500
= 4,16,500
Answer:
don't know sorry