Question

SECURITY AGAINST GOODS
53. A consigns goods to B on the following terms :
(1) Goods are to be sold at or above invoice price.
(ii) B is to get 5 per cent commission on sales at invoice price plus 20 per cent of any
surplus price realised.
(iii) Selling expenses are to be borne by the consignee himself.
(iv) 60 per cent of the invoice price is to be received in advance as security.
(v) The account is to be settled within a fortnight from the date of sale.
A consigns goods worth 75,000 (including freight) to B ; the invoice price of the
goods was 1,00,000. The consignee took delivery of the goods and paid 1,000 as
carriage expenses. B sells 70% of the goods at * 90,000. His selling expenses were
2,000.
You are required to prepare consignment account and B's account in the books of
A and A's account in the books of B.​

Answer 1

Answer:

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