V of Vikarabad consigned goods value of rupees 50000 to .S. of
Secunderabad. Vpaid transport charges rupees 4000 and draw a bill for two
months on S for 30000 as advance. This bill was discounted with banker for
rupees 29500. S send account sales of consignment stating that it the entire
stock was sold for rupees 72000 and cartage 2000 Commission 3000 and Bank
draft for the balance .prepare necessary ledger accounts in both the parties.
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Rs.4000
Cost of goods sent on consignment = Rs. 50,000
Expenses incurred by the consignor = freight + insurance = Rs. 1,500 + Rs. 500 = Rs. 2,000
Expenses incurred by the consignee = unloading + rent = Rs. 500 + Rs. 500 = Rs. 1,000
Commission payable to B = 5% of sales = 5% x Rs. 60,000 = Rs.3,000
Amount Remitted by B to A after deducting commission and expenses incurred by him = Rs. 60,000 - Rs. 3,000 - Rs. 1,000 = Rs. 56,000
Profit on consignment = Amount received from B for sale of goods sent on consignment - Cost of goods sold - Expenses incurred by A = Rs. 56,000 - Rs. 50,000 - Rs. 2,000 = Rs. 4,000
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