Bharat Shipping Ltd. of Bombay acquired a new ship, M.V. Jalabahi at a cost of ~ 25,00,000. The ship was ready for service on 1.1.2015. Upto 31.3.2015, the ship had made 2 complete voyages one to London and back and was half way through the next to London. The ship carried the following freight :

To London 7,500 tonnes @ ~ 30 per tonne. From London 9,000 tonnes @ ~ 25 per tonne. Unfinished voyage 9,500 tonnes @ ~ 25 per tonne. The following expenses were incurred: Salaries and wages of crew ~ 80,000; Fuel ~ 40,000; Sundry stores ~ 8,000; Port dues Bombay ~ 8,400 and London ~ 6,000; Stevedoring @ ~ 2 per tonne ~ 52,000; Share of overhead for the ship for the period ~ 30,000.

You are further informed that 5% commission was paid to agents in addition to 1% address commission. An insurance policy was taken out @ 2% p.a. on the ship and freight was insured at a premium of ~ 1,200 p.a.

You are required to prepare the Voyage Account for the period of 3 months ending on 31.3.2015.

Answer rating: 100% (QA)

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