A of Surat consigns goods to B of Jaipur to be sold at or above invoice price. B is entitled to get

A of Surat consigns goods to B of Jaipur to be sold at or above invoice price. B is entitled to get a
commission of 8% on sales at invoice price plus 25% of any surplus price realized. B accepted a bill
of exchange drawn by A amounting to 50% of the invoice price.
In the year 2010 goods consigned by A were invoiced at Rs. 2,50,000. These goods cost to A Rs.
2,00,000 (including freight). Sales made by B during the year amounted to Rs. 2,35,000. At the
end of the year, goods unsold with B represented an invoice value of Rs. 60,000. During the year,
A had received from B Rs. 40,000 by bank drafts, certain remittances being in transit on 31st Dec.,
2010. Prepare necessary ledger accounts in the books of both the parties. Also show how the
consignment stock will appear in the Balance Sheet.
ishwaryap
Asked Sep 02, 2013
Edited Sep 02, 2013

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