Amjad of Multan sends 10 fans on consignment to Majeed at Sialkot. The cost of each fan is Rs.1,200. Amjad spends Rs. 2,000 on dispatching and packing. Majeed accepts Amjad’s draft for Rs.7,000. Majeed informs Amjad that 8 fans have been sold at Rs.2,000 each. Expenses paid by Majeed are freight Rs.2,000, go down rent Rs. 1,000 and insurance Rs. 500. Majeed is entitled to commission of 6% on sales and 1 ½ % as del-credere commission. Majeed settles his account for the balance due.

Required: 

Give journal entries in the books of Amjad. 

Also prepare the necessary ledger accounts.

Answer rating: 100% (QA)

1 Particulars LF Dr Cr 1 To Majeeds Ac 12000 12000 Being fans sent on consignment 2 To Maj... View the full answer