Question

X sent on 1st july to Y goods costing rupees. 50000 and spent rupees 1000 on packaging. Y received the goods and sent his acceptance to X for rupees30000 payable at 3 months. Y spent rupees 2000 on freight and cartage, rupees 500 on godown rent and rupees 300 on insurance. On 31st December he sent his account sales. prepare consignment account?​

Answer 1

Answer:

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