‘X’ from the Velur consigns 50 Bales of cotton
at Rs. 400 per bale to his agent ‘Y’ in Madras.
‘Y’ is entitled for a commission of 5% on sales
plus expenses. ‘Y’ sells the consignment for
Rs.28,000 incurring freight charges Rs.100
and insurance Rs.50 and remils the sales
proceeds by a cheque.
Pass journal entries in the book of both parties.
Answers
Answer:
this is very hard to solve
Answer:
Entries in the books of consignor and consignee are passed.
Explanation:
In the Books of Mr."X" (Consignor)
1 Madras Consigment A/c-------Dr 20000
To Goods sent on consignment A/c 20000
(Being goods sent on consignment A/)
2 "Y" A/c----------------Dr. 28000
To Consignment A/c 28000
(Being sales made)
3 Consignment A/c----------------Dr. 150
To "Y" A/c 150
(Being Freight and insurance incurred)
4 Consignment A/c----------------Dr. 1408
To "Y" A/c 1408
(Being Commission Payable i.e. 28150*5%)
5 Consignment A/c----------------Dr. 6442
To Profit and loss A/c 6442
(Being Commission Payable i.e. 28150*5%)
6 Bank A/c-----------------------------Dr. 26442
To "Y" A/c 26442
(Being sale proceeds paid through cheque)
In the Books of Mr."Y" (Consignee)
1 "X" A/c----------------Dr. 150
To Cash A/c 150
(Being Freight and insurance incurred)
2 Bank A/c-----------------------------Dr. 28000
To "X" A/c 28000
(Being sales made)
3 "X" A/c----------------Dr. 1408
To Commission A/c 1408
(Being Commission Payable i.e. 28150*5%)
4 "X" A/c----------------Dr. 26442
To Bank A/c 26442
(Being balance of sale proceeds remitted )
