Williams of Madras consigned 300 bags of tea at ₹ 2,000 per bag to Johnson of New Delhi
paying freight ₹4,000 and other expenses ₹ 2,000. Johnson sold 250 bags at ₹ 2500 per bag
and 25 bags at ₹2 200 per bag for cash. Johnson spent for freight and octroi ₹3,000 and other
expenses ₹1,000.
He remitted the amount due to Williams after deducting his commission at 5% (Normal) +
2½ % (Overriding) and + 1/2% (Del-credere Commission). Johnson found that one customer
to whom credit was allowed paid only ₹4,800 against ₹5,000 in full settlement. Other
customers paid the amount due.
Prepare necessary ledger accounts in the books of Williams and Johnson alongwith workings.
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