On 1/1/2017, Amar Mills of Calcutta consigned 5,000 Kg of oil to Vijay Stores of Madras....

Transcribed Image Text:

On 1/1/2017, Amar Mills of Calcutta consigned 5,000 Kg of oil to Vijay Stores of Madras. Each Kg of oil costs $ 8. Amar Mills paid $ 50 as carriage, $250 as freight and $200 as insurance. During transit, 500 Kg were accidentally destroyed for which the Insurance company paid directly to consignor $2,500 in full settlement of the claim. On 1/4/2017, Vijay Stores of Madras reported that 3,500 Kg of oil were sold @ $9.50 per Kg. and expenses being: Godown rent $ 500 and salesman's salary $750. Vijay Stores is entitled to a 5% commission on sales. Vijay Stores also reported a loss of 20 Kg due to leakage. Show (i) Consignment to Madras Account; (ii) Vijay Stores Account; (iii) Consignment Stock Account in the books of the consignor. On 1/1/2017, Amar Mills of Calcutta consigned 5,000 Kg of oil to Vijay Stores of Madras. Each Kg of oil costs $ 8. Amar Mills paid $ 50 as carriage, $250 as freight and $200 as insurance. During transit, 500 Kg were accidentally destroyed for which the Insurance company paid directly to consignor $2,500 in full settlement of the claim. On 1/4/2017, Vijay Stores of Madras reported that 3,500 Kg of oil were sold @ $9.50 per Kg. and expenses being: Godown rent $ 500 and salesman's salary $750. Vijay Stores is entitled to a 5% commission on sales. Vijay Stores also reported a loss of 20 Kg due to leakage. Show (i) Consignment to Madras Account; (ii) Vijay Stores Account; (iii) Consignment Stock Account in the books of the consignor. On 1/1/2017, Amar Mills of Calcutta consigned 5,000 Kg of oil to Vijay Stores of Madras. Each Kg of oil costs $ 8. Amar Mills paid $ 50 as carriage, $250 as freight and $200 as insurance. During transit, 500 Kg were accidentally destroyed for which the Insurance company paid directly to consignor $2,500 in full settlement of the claim. On 1/4/2017, Vijay Stores of Madras reported that 3,500 Kg of oil were sold @ $9.50 per Kg. and expenses being: Godown rent $ 500 and salesman's salary $750. Vijay Stores is entitled to a 5% commission on sales. Vijay Stores also reported a loss of 20 Kg due to leakage. Show (i) Consignment to Madras Account; (ii) Vijay Stores Account; (iii) Consignment Stock Account in the books of the consignor. On 1/1/2017, Amar Mills of Calcutta consigned 5,000 Kg of oil to Vijay Stores of Madras. Each Kg of oil costs $ 8. Amar Mills paid $ 50 as carriage, $250 as freight and $200 as insurance. During transit, 500 Kg were accidentally destroyed for which the Insurance company paid directly to consignor $2,500 in full settlement of the claim. On 1/4/2017, Vijay Stores of Madras reported that 3,500 Kg of oil were sold @ $9.50 per Kg. and expenses being: Godown rent $ 500 and salesman's salary $750. Vijay Stores is entitled to a 5% commission on sales. Vijay Stores also reported a loss of 20 Kg due to leakage. Show (i) Consignment to Madras Account; (ii) Vijay Stores Account; (iii) Consignment Stock Account in the books of the consignor.

Answer rating: 100% (QA)

Consignment to Madras Account To Goods Sent on Consigment 40000 By Profit and Loss Account 4050 T... View the full answer