On 1st January, 2016 Sadhan Sen of Sodepur sent 1,000 units of silk goods to Biren Bose of Berhampur. The goods cost BDT 75,000 to Sadhan and these were sent on consignment basis. Sadhan had to incur an expenditure of BDT 1,500 on the goods. On the due date, the goods reached their destination and Biren had to spend on the goods BDT 1,000 on various accounts. On 30th September, 2016 an Account Sales was received by Sadhan showing that 750 units were sold at BDT 150 each. Biren charged 5% ordinary commission and 7.5% del credere commission. The consignee sent with the Account Sales a sight draft for BDT 90,000 only.

You are required to prepare the Account Sales and the necessary journal entries and ledger accounts in the books of both the parties.

Answer rating: 100% (QA)

Journal Entry Book of Biren Date Account Dr Cr Miscellaneous 1000 Cash 1000 Biren Spend 1000 BDT on ... View the full answer