Maria sent a consignment of the value of RM48,000,000 at cost to her agent Elantara, and drew a 90 day bill on her for 75% of the value on 2 May 2020. Maria discounted the bill with the bank who charged her 5% for the service. Maria’snormal selling price was cost plus 50% and Elantara was entitled to commission at the rate of 12% on normal selling price plus 20% of any surplus prices above normal. Maria paid transportationRM600,000 and insurance RM500,000 on the goods. The bill of exchange was dishonoured upon presentation and Elantara agreed to accept another bill payable 30 days after sight for the face value plus interest charges of 3%. The second bill was honoured on the due date. On 15th October 2020, Elantara notified Maria of sales amounting to RM80,000,000 with 20% of the goods remaining unsold. Elantara sell enclosed a cheque for the balance due after deducting her commission and also RM810,000 for expenses.

You are required to show how the above transactions would appear in the ledger accounts for both Maria and Elantara

Answer rating: 100% (QA)

Books of Maria SNo Account Debit Credit 1 Consigment 48000000 Goods send on consignment 48000000 Goods sent on consigment 2 Bill Receivable 36000000 C... View the full answer