Programme Code : BDP
Course Code : ECO-02
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Year : 2012 Views: 1525 Submitted By : priya On 28th September, 2012

Do you have solution for this Question. If yes    I aslo want solution.

Q.




A of Surat consigns goods to B of Jaipur to be sold at or above invoice price. B is entitled to get a



commission of 8% on sales at invoice price plus 25% of any surplus price realized. B accepted a bill



of exchange drawn by A amounting to 50% of the invoice price.



In the year 2010 goods consigned by A were invoiced at Rs. 2,50,000. These goods cost to A Rs.



2,00,000 (including freight). Sales made by B during the year amounted to Rs. 2,35,000. At the



end of the year, goods unsold with B represented an invoice value of Rs. 60,000. During the year,



A had received from B Rs. 40,000 by bank drafts, certain remittances being in transit on 31st Dec.,



2010. Prepare necessary ledger accounts in the books of both the parties. Also show how the



consignment stock will appear in the Balance Sheet.


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