Rahim of Calcutta consigned 100 cases of medicine. Costing Rs. 1,000 per case to Karim of Kanpur on 1.1.2017. The goods were to be sold at 25% above cost. Any deficiency in the selling price was to be borne by Karim. Karim was, however, entitled to a special commission @ 25% of any surplus price realised. Karim was further entitled to an ordinary commission of 5% and del credere commission of 21/2% on all sales. Rahim incurred the following expenses:

Packing charges Rs. 6,000; loading charges Rs. 1,000; lorry charges Rs. 12,000; and railway freight Rs. 21,000 

The cases were received by Karim on 15.1.2017. The Account Sales received from Karim on 30.6.2017 revealed the following: 40 cases sold on 21.3.2017 @ Rs. 1,500 per case, 30 cases sold on 24.5.2017 @ Rs. 1,200 per cases, 10 cases sold on 30.6.2017 @ Rs. 1,300, 5 cases were stolen by a dishonest employee. A compensation of Rs. 2,000 was realised from him. Karim incurred unloading charges of Rs. 2,000 and warehouse rent Rs. 3,000. Karim enclosed a bank draft for the balance due. 

Write up necessary accounts in the books of Rahim.

Answer rating: 100% (QA)

To record the consignment of 100 cases of medicine to Karim of Kanpur Rahim can make the following journal entry Date Account Debit Credit 112017 Cons... View the full answer