Williams of Madras consigned 300 bags of tea at ? 2,000 per bag to Johnson of New Delhi paying freight ?4,000 and other expenses ? 2,000. Johnson sold 250 bags at ? 2500 per bag and 25 bags at ?2 200 per bag for cash. Johnson spent for freight and octroi ?3,000 and other expenses ?1,000.He remitted the amount due to Williams after deducting his commission at 5% (Normal) +2½ % (Overriding) and + 1/2% (Del-credere Commission). Johnson found that one customer to whom credit was allowed paid only ?4,800 against ?5,000 in full settlement. Other customers paid the amount due. Prepare necessary ledger accounts in the books of Williams and Johnson along with workings. 

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Solution JOURNAL In the books of Williams Consignment to New Delhi Account To Goods sent on Consignm... View the full answer