Gavaskar of Bombay sent 100 TV sets to Kapil of Chandigarh on consignment basis. The cost price of each set is ~ 5,000. Gavaskar paid ~ 100 for cartage, ~ 1,500 for railway freight and ~ 400 for insurance premium.

He drew a bill, payable after two months for ~ 50,000, which was accepted by Kapil, by way of security against the consignment. He then discounted the bill for ~ 49,900.

Kapil paid ~ 600 as godown rent and ~ 400 as sundry expenses. He sold 90 sets @ ~ 5,400 per set. But he could not realize the sale proceeds of 5 sets from the customers. He was entitled to receive 4% ordinary commission and 1% del credere commission. The net amount due from Kapil was received in time.

Prepare the Consignment Account, Kapil Account and Advance Against Consignment Account in the books of Gavaskar.

Answer rating: 100% (QA)

To prepare the Consignment Account Kapil Account and Advance Against Consignment Account in the book... View the full answer