On 30th September, 2014, Deys Medical of Calcutta sends 500 cases of medicine costing ~ 1,000 per case to Medicine Corner of Delhi on consignment basis. Deys Medical incurred the following expenses: packing expense @ ~ 20 per case (paid in cash); insurance premium ~ 2,000 (paid by cheque); freight ~ 10,000 (paid in cash); forwarding agents expenses ~ 1,000 (due).

On 31st December, 2014, Medicine Corner forwards an Account Sales to Deys Medical showing that 200 cases have been sold @ ~ 1,250 per case while 250 cases were sold @ ~ 1,200 per case and the 50 cases remained unsold. Medicine Corner paid the following expenses : cartage ~ 2,000; unloading ~ 1,000 and ~ 2,000 as godown rent. Account Sales accompanying an account payee cheque for ~ 4,00,000.

Under the agreement Medicine Corner was to receive 5% commission on sales.

You are required to show: (1) Consignment to Delhi Account; (2) Medicine Corner Account; (3) Stock on Consignment Account; and (4) Goods sent on Consignment Account in the Ledger of Deys Medical and Balance Sheet.

Answer rating: 100% (QA)

Deys Medical Ledger Calcutta Consignment Transactions Transactions As of September 30th 2014 and Dec... View the full answer