Asif consigned 5 motor bikes to Arif at Rs.30,000 each. He paid Rs. 10,000 for freight charges and Rs.2,000 for insurance. Arif paid Rs.5,000 for godown rent and Rs.1,500 for advertising expenses. Arif sold 4 motor bikes for Rs.40,000 each. Arif is entitled to commission of 10% on sales. Arif sends a bank draft for Rs. 30,000 to Asif as an advance.

Required: Prepare necessary accounts in the books of Arif.

Answer rating: 100% (QA)

JOURNAL ENTRIES IN THE BOOK OF ARIF CONSIGNEE 1 sale of bike ... View the full answer