B of Bombay consigned 400 packages of coffee to K of Kanpur. The cost of each package
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B of Bombay consigned 400 packages of coffee to K of Kanpur. The cost of each package was Rs. 300. A sum of Rs. 2,000 was paid towards freight and insurance by B. In the transit, 60 packages were damaged. However, the consignor received Rs. 400 for the damaged packages from the insurance company. The consignee accepted a Bill of Exchange for Rs. 60,000 for 60 days as an advance to B of Bombay. The operating statement from the consignment disclosed the following information :
(a) 280 packages were sold @ Rs. 360 per package.
(b) The damaged packages were sold @ Rs. 100 per package.
(c) He also paid Rs. 1,400 towards godown rent, Rs. 1,000 for carriage outward and Rs. 3,400 towards clearing charges. The consignee is entitled to a commission of 10% on the sale proceeds.
At the end of the consignment period, K of Kanpur sent a bank draft to B of Bombay You are required to prepare the necessary accounts on the books of consignor B of Bombay.
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College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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