25.

80
Ans
.Value Fininancial Actn
orVoss
Value of unsoldfranit Ra
12. A company
sends s0 Bales
of Cotton to its
its c o
consignee sold stock
al a

following profit
bale to the company is Rs. 600. The
cost ofeach e of
in connection
with this consignment. are the 20
) Rs. 900 paid by the consignor for despatchine goods. expenses itk
2.000 paid by the consignee for freight and landing
Rs. 1,000 paid by the consigneefor godown rent ete
etc.
charges.
You
the value of stock at the end (at invoice price)
consigniment
arerequired to calok
if the consignees
Bharathiar, B.Com. No 2001; No. Iw
Bharatohidasan,old B.Com.
Ans: Value
stock: Rs.Nov,75MI
N

13. Balan consigned 100 packets of cosmetics each costing Rs. 300 to his
He paid Rs. 500 towards freight and insurance. 15 packets we 8
the way. Consignee took delivery of the remaining and spent R
ent
Rs. 1,000 import duty and Rs. 300 as camiage outwards, Rs. 700 as
by fre n destroyed
godown re
Calculate the value of abnomal loss.

Manonmanian, B.Com. April 20

Ans: Abnormal loss: Ra 45
(B) Other Exercises
Goods sent on Consignmem at Cost

1. Madurai Somu & Co. consigned S0 Cases of [email protected] each to Chennai Na

&Co. Madurai Somu & Co. paid Rs. 200 as insurance and Rs. 300 as
freight. Nathe
&Co. sold the goods for Rs. 24,000 and paid Rs. 520 for cariage and Rs 10
Godown Rent Nathan & Co. is eligible for 49% Commission on Grossales Nuha
&Co.Sends cheque for the balance due. Showthe joumal entries and Nathun&Co
account in the books of Ms. Madurai Somu & Co.
[Bharathldasan, B.Com. April M;
Bharathiar, B.Com. Non 1
Ans: Amount due from Nathan & Co,:Rs. 2,3
R 11,
Profit on Consignment:
.
On Ist April, 1996. Arun of Nellore consigned to Balu ofChennai 200 rad
.300 each. Arun paid Rs. 500 for insurance and Rs. 1,000 for freigh n
andks
harges
581u received the consignment and had to pay Rs. 300 as
1S0 as dock unloaiu A ales

charges. On 14th Octobe 1996, Balu sent on

accoun and20 00 each
informing that till 30th Sept., 1996, 180 sets were sold at Ks. a f t e r deduchngt s

at Rs.
1,350 each. Balu sent the balance by a demand
commission at 10% on sales. d
Show the
necessary journal entries in the books of Arun.
Manonmanian, B.Com.,.
Consigne Ccounts

Ans: Loss on
Amount received consignment
from Balu:
: Rs.
10,850
Velur consigns s0 Bales ofCotton at Rs. 400
per bale
Rs. 2,50,6501
i s entitled tor a
Madras. "Y" commission of 5% on
sales plus
to hhis
agent Y"
consignment for
Rs
incuring freight charges Rs.
o00 expenses. in

sells the
the sales proceeds by a
and remils
y"
cheque. Pass 100 and
500
o l h t e p a r t i e s .
journal entries in theInsurance
books of
Bharathiar, B.Com. April 1999; Nov.
Ans: Profit on 1998
Consigament : Rs.
Amount due from Y : 6,00
Joumal entries in the books of 'A' the Consignor. Rs.
26,000)
consignment Rs. 15,000
Goods sent on
Expenses
paid by 'A" :»
Freight- Rs. 100
Packing and Insurance- Rs. 500
sh Amount received as advance-60% of goods sent.
B:
Sales made by
(v)

of goods for cash @ 30%% Profit on cost

of goods for credit@ S0% Profit on cost

()Expensespaid by B:
Freight- Rs. S00
Octroi-Rs. 1,000
SellingExpenses-Rs. 500

()Commission due to B 10% on sales

vi) Bad debts incurred-Rs. 800
Bharathiar, B.Com., Now 1998]
Ans: Loss on Consignment: Rs. 175;
Amount due from B: Rs. 6,425)
int: Loss due to
bad debts should be borme by the consignor.
AB Lad. of Delhi consigned on 15th March 1998, 45 cases of glass ware (Cost price
41,235) to CD Ltd. of Agra for sale on Commission at 59% on gross sale proceeds.
Ihe
consignor paid freight and cariage amounting to Rs. 539
ne goods arrived at Agra on 20th March 1998 and CD Ltd. paid clearing charges
Uundry charges Rs. 59, Carriage Rs. 102 and godown charges ks.
he goods were sold
by CD Ltd. as under
25.82
15 cases at Rs. 1,003 per case, 22 cases at Rs 1,939, per Case
Financial AwnEting
AM and
and the the
ernaindes
for Rs. 10,000.
draft for 19,) o AB LM
On June 21, 1998, CD ILAd.
sent a Rs.
account sales together with bill
On Ist July 1998, CD Lud. forwarded an Methag
for the balance.
the books of consignor
Give necessary ledger accounts in
Bharathidasan, B. Com, Nov. 2011
Ans: Profit: Ra. 3,478. Amount of bill: Ra. 35297

6. Mohan of Madras sends a consignment Rs. 10,000 to Shar

of the value of
Calcutta drawing on the latter for Rs. 8,000 as an advance against the saTe M
clears the goods, paying Rs. 0 t d
pays Rs. 960 for freight etc. Shankar
dock-dues, etc. He sells on credit half the lot for Rs. 8,400 and halfof the remaitite

sold for cash Rs. 4,000. Shankar's remuneration is % on gross proceeds. Sharkar

sends out Account Sales and a draft to Mohan for the balance as shown therein
Unsold part of the consignment is brought into books with proportionate expense

incurred by the consignor.

books of Mohan.
Draft the necessary ledger accounts in the
Karnataka State, I PU.C, Occ 197

[Ans: Profit on comsignmeat : Rs. 3,82

Amount due from Shankar: Rs. 4,04
7. Satish of Trivandrum sent on consignment to Mahesh of Cochin goods costing
Rs. 350 and Insurance
Rs. 44,250 and paid railway freight Rs. 1,140, Cartage
Rs. 1,050. Halfof the goods were sold by Mahesh for Rs. 26,250. He incumred storage

expenses Rs. 300 and selling expenses

Rs. 525. He is entitled to a commission of
Rs. 1,310 and remitted the balance by bank draft.
in the books of Satish.
Prepare necessary ledger a/cs
Bharathidasan, B.Com. Now 200
Stock 233%
Ans: Profit Rs. 720;
Amount due from Mabesh Rs. 24,11
basis. On April 1,1
8. Hari sold goods on behalf of Kailash Agencies on consignment
he had with him a stock of Rs. 20,000 on consignment.
Hari had instructions to sell the goods at cost plus 25% and was entitled
commission of 4% on sales. He was also entitled to 1% del credere commission
total sales for guaranteeing collection of all sale proceeds.
During the half-year ended September 30, 1995 cash sales were Rs. 1,.0
credit sales were Rs. 1,05,000 and Hari's expenses relating to the consigninment
seu
3,000 and goods
Rs. 3,000 being salaries and insurance. Bad debts were Rs.
consignment were Rs. 2,00,000. the

ACcount in the books of Kailash Agencies showin

Prepare consignment
the half-year.
profit or loss for /CA. Entrance
 stock: Rs. 40,000; Consignment: 25 83
u n i s

stock
on
closing
Ans:/Profit Rs.
of Salem sent 50 cases of Tea Rs. 250 30,750
"handraent Rs. 500 on packing, Rs. 750 on per case to
of
Tichy Chandra

also spent RS. 200 on

freight and Rs. 500
r a n c e .
vam a
S e l v a n

godown rent and Rs.

500
of
soId 40 cases
Tea @Rs. 360 per case. Selvam on
aries, Sev Selvam
59%
ol5%
on
on
gross sales. He remitted the balance by bank also is
Commission

draft.
d
nt and Selvam's account in
d o aC o n

Chandran's books.
IBharathiar, April 2000
Ans: Profit on
Consignment Rs 1,580;
Amount due from Selvam Rs.
Madras, consigned 100 tape recorders to National
12,980
Compa of each recorder
recorder was Rs. 500. The consignors paid company
each

ahad.
The cost
insurance
Account sales was received from National company showing
tRs. 800. 1

units at Rs. 600 each. The

of 80
proceeds
expenses paid and commission
sales were:
tnem

by
etxted
CamageRs. 200

expenses
Rs. 130
Esablishment
S% Rs. 2,400
Commission@
in the books of Central India compan
w ipurmal entries
Bharathidasan, B.Com. Now. 1997
Ans: Profit : Rs. 4,270; Stock Rs. 10,300;
Amount due from consignee Rs. 45,270]
tn& Bos. of Delhi consigned goods of the value of Rs. 5,000 to their agent,
Vade&Co. of Ceylon. They paid thereon Rs. 120 for freight and carriage and
0 for insurance. They drew a bill on Mazda & Co. for Rs. 2,000 as advance
ginst consignment and discounted the same for Rs. I1,950. They received account
sts showing that three-fourths of the goods were sold for Rs. 5,200 and
Nazda &Co's expenses amounted to Rs. 175 and their commission to Rs. 300.
The unsold stock was valued at cost plus proportionate charges, and a two months
tat was received from Mazda & Co. in settlement of the account to date.
loumalise the transactions in the books of Ram & Bros. and draw up the
sgment acount and consignee's account in their ledger.
IDelhi Hr. Sec]
Ans: Profit on Consignment: Rs. 775;
Amount due from consignee : Rs. 2,725
t Bon Ist January 1988, 700 bales ofcotton costing Rs. 100 per bale.
on B for
S0.000 ed on the consignment were Rs. 5,000. A drew a bill
D e on 30th June 1988 which B accepted. The bill was discounted by
S bankers on 31st January, 1988 at 120 p.a.
B
rendered account to A
B00 on31st March, 1988 showing salesof 500 bales for
On
l e*oBTemi xpenses of Rs. 5,000. B's Commission was 10 per cent.
remitled to A the net amount due to him.
 On 31st May, 1988 B sold the balance stock for Financial Accounting
expenses of Rs. 4,000. He remitted Rs. 20,000 to A, the Rs. 30,000
earmed by him. On 30th June 1988 the bill balance treateer incu
the amount due to the bank was accepted by B was disho
Commi
paid off by A along with
Rs. 200. incidey him
Pass journal entries in the books oftA (including bank
transactios
charges
ctions)
[Ans: Profit Rs. 9,500;
Balance dae RaICA Imen
Hint: Discount on bill is
shown as consignment expense.
13. The Cochin consignment account in the
balance of Rs. 1,500 representing the cost books of Ranaji of Bombay shoued
of 10
March 1, Ranaji sent a further bicycles on Ist January 10
consignment to Cochin of 40 bicycles
each. The freight and other
charges amounted to Rs. 210. On Ist costine
Agent sent an. Account sales showing that 8 bicycles from June th
the old
second consignment realised Stock arealised
Rs. 140 each and 25 bicycles from the
15 bicycles remained in stock unsold. Rs. 200 each
Two bicycles from the old st
at Cochin were retumed to stock being unsalesab
Bombay, for which the Cochin Agent sent a
note for Rs. 30 separate deba
being expenses incurmred by him.
The Cochin agent is entitled to a
selling commission of 5 per cent which
out-of-pocket expenses in respect of the consignment. Show the coven
in the books of the necessary accout
consignor supposing that he closes his accounts on 30th
June
IPunjab, RCom
[Ans: Proft Rs. 483; Balance due Ru 574
Abnormal Loss: Rs 30
14. Williams of Madras consigned 300 chests of tea at Rs.
New Delhi paying freight Rs. 4,000 and other
2,000 per chest to Johnson of
expenses. Rs. 2,000. Johnson sold 250
chests at Rs. 2,500 per chest and 25 chests at Rs.
2,200 per chest for cash.
Johrson
spent for freight and Octroi Rs. 3,000 and other expenses Rs. 1,000. He remited the

amount due to Williams after deducting his commission at 5% (normal)

2,;%(O
rding) and 5% (del credere commission to be given on total sales). Johnson fund
that one customer to whom credit of 40 days was allowed paid only Rs. 4,800 agains
Rs. 5,000 in full settlement. Other customers paid the amount due. The physica
stock taking at Johnson's godown revealed the actual stock as 22 chests.
Pass joumal entries in the books of both parties and prepare ledgeraccoumts
IDelh, BCom
6%
Ans: Profit on Consigament Rs
Cash received from Jobnson on final settlement: Ra &
Stock on coasignment: Rs. 44,660; Deficieney of closing Stock
abaorma
(to be credited to consignment A/c as
 e t t i Adcounts 2585
Ca of Delhi consigned 10,000 kg. of ghee costing Rs 20 per kg to Sonan
kg of
Mumbai. Nfonan &o paid Rs. S0,000 250
was settledinsurance
and
troved in transit. The insurance claim freight
as
r e r dsmoyed i at Rs. 5,000 and was
the consignors
Co. took delivery of the consignment. After three months, Sohan & C

ere sold at
Rs. 30 per kg.
S0Ag
epenses were
other
The
Rs
Godown Rent 5,000
Waes
17,000
Printing and Stationery
including advertising 10,000
IBharathiar, B.Com April 1999]
Aas: Profit on Consignment Rs. 5,500;
6,25
Value of goods lost in transit: Rs.
Value of unsold stock: Rs. 56,250]
of Rs 2.50 per kg. The consignor paid
were sent at the rate
000 kg
of naphtha were accidentally destroyed
and insurance. 200 kg. of Naphtha
2000 for freight
Rs
were Rs. 450
dring the transit

4,000 kg. @ 3.25 per kg and his expenses a

sold Consignee reported
The consignee advertisement and selling expenses.
and Rs. 550
godown rent
due to evaporation.
ios of 50 kg
calculate
above particulars
From the
Abnormal loss and
Stock
April 1996}
Value ofConsignment JBharathiar, B.Com,

14.500 200kg
ofabnormal
loss Rs. S kg
Ans: Value

Rs. 2,198t
13,920750ks
4.750k*5048|
Stock

Valeeof Cousignament oil to Das of Calcuta

10,000 kg. of Castor
Swastic oil
mills paid
17 The Bombay, consigned The
wastic Oil Mills, the oil was
Rs. 2 per kg. accidentally
destroyed
on Ist April 1985. The cost of transit 250 kg.
were
settlement
ofthe
Rs. 5,000 as freight and During full
i insurance. Rs. 450 in
to the consignors
USUTer paid directly a
accepted
Claim. and
immediately
June
on
10th April months. On 30th
3
Das took delivery of the c 10,000 for
consignment
godown
bill drawn on for Rs. being; on
Oil Mills
him the Swastic
sold@Rs. 3,
the expenses

1985 Das y e d that 7,500 kg.

were
25.86
Rent Rs. 200; on advertisement Rs. I,000 and on salesmen's salaries R a
Financial Accounting
.2,000. Ds
is entitled to a commission of3 per cent plus % per cem del credene

Das reported a loss of 100 kg. due to leakage. Assuming that Das
due by bank draft, show the accounts in the books of Swastic Oil Mi a
hich cloe
the books on 30th June.
B.A. Bharathiar, Nov.
1997
Ans: Loss on Comsignment AJe Ra 68
Value of unsold stock Rs 5,431; Value of abnormal lons Ra. 624
Amount due from Das Ra
82
Hint: Loss due to leakage in normal loss.
18. Mr. Thangam consigned 100 cycles costing Rs. 1,500 each to Mr. Raja. He curTed an
5 cycles we
expense of Rs. 2,000 for sending the consignment. During transit,
was received from the insurance company. Mr. Rai
damaged and a claim ofRs. 7,000
took possession of the remaining cycles
and, out of them sold 80 cycles at Rs. 200
of Rs. 3,300 and an indirect expenditure o
each. He incurred a direct expenditure
He is allowed a commission of 5% on gross sales
the consignment.
Rs. 1,500 on
account and consignee's account in the books of consignor.
Prepare consignment
Manonmanian, B.Com. Nov. 200

Abaormal loss Rs. 7,600; Coasiga ment Stocb

Ans:
Profit Rs 25,70
15 cycles valued at Rs. 23,400;
Sankar of Kerala which cos
Madras consigned 100 cases of Candles to
19. Krishna of Some the cases were damaged
30 case. He incurred Rs. 100 as expenses. of
Rs. 10 for Carage
him Rs. per
90 cases only. Sankar spent
took delivery of
in transit and Sankar 35 per case. He sent the
rent and sold the
consignment at Rs.
and Rs. 40 for godown Commission at the rale of
expenses and
his
Krishna after deducting
proceeds to from the Railways damages.
as
net 180
Krishna received Rs.
5% on the sale. Sankar's Account
in Krishna's
book.
Account and 19
Show Consignment BCom. Non
[Bharathiar,
Rs. 152.
Consignment
Ans: Profit on
2,9429
Sankar Rs
Amount due from
Rs J10
damaged in transit :
Goods
of Coumbi
to Chandru Packing
units of commodity
200
of Madras consigned the following expenses
20. Govindan He incurred
Rs. 120 per
unit.
Rs. 160. Twenty
units werc
which cost him
Rs. 120 and Railway freight KS.
Chandru spent
n the
120, Carriage units only.
Rs.
Chandru took
delivery of 180 at Rs.
140
peru thenale of
transit and consignment

160 for godown rent and

sold the and comims 720,
pe 720fom
and Rs. deducting his expenses receivea
G o v i n d a n after
Govindan
a m o u n t to account
sales.
net with
together
sale proceeds
5% on the
ledger GovindaMon
of 2

as damages. in the
the Railways
BCom.

transactions
would a p p e a r
IBharathlar,

these
Show how
 87
Ans: Profit on Comsign ment Re1,780
Amount due from Chandre Ra 23,740;

etha Oil Ltd. Goods damaged in transit: Rs 1,4401

eis. The cost of one kg oil wasconsignedof 2,000 kg of oil
to Suresh & Co to be
sold on
cking Arer sometime, Suresh & Co.Geetha Oil LId. spent Rs. S,000consignment
etc. Rs. 45.
on

Normal (leakage) loss 100 kg sent the

-
foliowing report tre
Abnormal loss due to
mishandling- 100 kg
Sale- 1.S00 kg @ Rs. 60 each
Commission-e on Sale proceeds
Preper Consignment A/c the books of in
Geetha Oil Ltd.

Bharathidasan, B.Com. April 1997/

Ans: Profit Rs.
10,500; Abaormal Los:
Rs. 5,000; Closing Stock
Hint: Normal loss Is to be borme by other good production. Rs. 15,000
a7at Company at
Caicutta sent 100 cycles each costing
2Deny 8t Kanpur. Bharat to Hindustan Rs. 300
company company spent for freight Rs.
cles damaged by fire dunng transitL
were 2,000, insurance Rs.
baiance of cycles by spending Rs. 150. Hindustan company has taken 300.
the
Hindustan company sent RS. 5.00
as advance
cies at Rs. 400 each. It
to Bharat
company. It sold 80
entitled spent Rs. 400 for Godown Rent and Advertisement.
also to a
commission of 5%. The
Insurance company
It was
Rs 2800 for damaged cycles due to fire. accepted to pay
Give necessary ledger acCcounts in the books of Bharat company.
Bharathidasan, B.Com Nov.
Ans: Profit (excluding Abaormal loss) : Rs. 2001
4,027;
Abnormal loss Rs. 3,230 Closing stockRs
3,247.
Hint: Profit & Loss Alc will be debited with Rs. 430
(3,230 2,800) as net
abnormal loss.
23 Fxcel Chemicals Ltd.
consigned to National Chemicals company 2,000 kgs ofa Chemical
The cost of
chemical and freight thereon were Rs. 18 and Re. I per kg respectively.
An Account Sales was received
from the Consignee showing 1,000
K per kg Sales expenses amounted to Re. I per kg, insurance Rs. 1,000,kgs
32 sold at
brokerage
1% and
Consignee's Commission at 2 %. They also reported a shortage in
040kgs on the whole consignment, which was due to the inherent quality of
te chemical.

Consiio
gnor. COnsignment account and the consignee's account in the books
of the*
ICAHB, Oct. 1976

4949-50
 25.88

Amount due
Ans: Pront on
from
Financial D.Accomnting
Consignment
Chemieahnment Ra 4611%
National
GOODS Value unsold Co. Ra of
SENT CONSIGNMENT AT
ON stoek Ra. 4
:

24. Sudhakar
of INVOIC 1A
Co., KashmirBangalore consigned
at
500
watches costing Rs.
a
profoma invoice price of Rs. 225 175 each.
following expenses per watch. his agerts K
1. Freight Rs. 1,200; Insurance at
their agent at Rs. 230 4% on the
each, who incured invoice price.
pavd fer the
450 wate
(1) Clearing
charges Rs. 800 (2)
the
following expens watches were vd
enses.
(4) Advertisement Rs.
1,500. Storage 900 (3) Sellino
Rs.
.
The agents sent a
Draft for the Demand Draft for Rs.
remaining amount along with 30,000 as advance initiall
a
commission of 15%on the invoice account sales.
The agets w
of the
goods sold. price and S% on the B
excess over the
Show the value of unsold d
load in the books of the stock and the
consignor. necessary entries forfor the ren
the removal of the
Ans: Value of
25. On Ist
wnsold stock: Rs l1,
January, 1975 A Ltd. of Calcutta
fans invoiced Rs. 275 each which wasconsigned to
at India Traders
of Delhi 250
25% above their
packing etc. Rs. 200, insurance Rs. 100 and cost price. A
Ld. aid
t

Traders sold 200 fans at Rs. Carriage Rs. 300. On Ist

290 each, the March India
expenses thereon being Rs. 530. Ther
commission was 5% and
2,% del credere on sales. They
account. There was a bad debt of Rs. 100.
remitted Rs. 10.0
Enter the above transactions in the
books of A Ltd.
Delhi, HSC 1974
Ans: Profit : Rs. 8,640;
Stock Reserve Rs. 2,750; Amoune due Closing Stock : Rs 13
from consignee Rs. 43,12
26. Rajesh of
Madurai sends 150 sewing machines on consignment to Murali of
The cost of
each machine is Rs. 2,000. But it was invoiced at Rs. Bangakne
Rs. 6,000 towards 2,500. Rajesh spe
freight. Murali sold 113 machines at Rs. 3,120 each. His selig
expenses amounted to Rs. 3,000. He is entitled to 6%
Credere commission. Prepare selling commission and 2%
necessary ledger accounts in the books of Rajes
IManonmanian, B.Com Ne I
Ans:Consigament stock :R 4
Stock reserve: Rs. 18,500; Proft: Ra9L
 counts
(nSygnne
n tAcco

d to
to 'J in Trichy. goods 25 89
consigned

to the
value of
in
Mauras
paying
freight
and insurance Rs.
4,000 and draws Rsa 60,000 (Cont
p' 000) bill on '' for
2 months
ths of the consignment was sold by "J'
at for Rs.
40000
70,000 and
Rs
Rs. 4,000
was incured. 'J' is entitled to a Commission of
of to 'D', the net amount held for his account by means of 10%
remitne a sight draft.
on sales

accounts in the books of 'D'.

ledger
S h o wt h e

IPeriyar, B.Com. Now./Dec. 2001;

Manonmanian, April 2000;
Bharathidasan, Nov. 2001
[Ans:Stock: Rs. 6,400; Profit: Ra. 19,400
Iadras forwarded on 1st June 1994, 50 Mopeds to Mr. Pathak of
Mop cold on its behalf. The cost of one moped was Rs. 8,000. But the invoice
Pana to1o.000.
Rs
Mopeds Ltd. incurred Rs. 15,000 on freight and insurance. The
Ement Was received by Mr. Pathak on l0-6-94. He also sent a bank draft for
advance against the consignment.
&s3,0,000 as
incurred Ks. 6,000 on godown rent and Rs. 14,000
Mr. Pathak also on

hrertisements. On 10-8-94.
Mr. Patnak sent an account sales stating that he had sold
I12,300 each. He is also entitled to a Commission of S% on
5mopeds at a price of Rs.
possisales.
Account and Mr. Pathak Account in the books of Mopeds
Prepare Consignment
Bharathidasan, BCom April 1996
CLStock Rs 51,500:
Ans: Profit Rs. 1,32,325;
dee
Stock Reserver Rs. 10,000 Amount
from consignee: Rs2,05,825].
of Trichy to be sold on
3. Nalaiyappan of Tirunelveli sends goods to Thaymanavan 60,000. But the
cost of the goods consigned
is Rs. invOice
Bgiment basis. The Rs. 6,000
25%. On receiving the goods, Thaymanavan pays
RE IS fixed at cost
plus
sold
rd ofthe goods
are
indirect expenses.
e i g h t and Rs. 3,000 towards
at 5% on sales. As per
orRs. 80,000. The Consign is entitled to a
Commission
the freight. Prepare
his end except
gement Thayumanavan is to rall expenses at

onsignment Alc. JBharathidasan,

BCom Non 199%

Stock: Rs 17,000;
Rs. 32,000;
Ans:Proft: Rs 5.000
Reserve:
Stock
Rs. 70,000
coasignee
Amount
due from account.
consignment
Hint: c
I t should not be
debited to
expenses ofconsignee
25.90
30. On Ist June, 1985, Suresh & Co.ofBangalore sent goods on Consignme
Dealers of Belgawn, 450 Electronic Calculatosat invoice price of Ra l e c
plus 25%, to be sold on his account and at his risk for 10% commission being
incurred Rs. 4,500 expenses for despatching the goods. On Ist ugust, r h
iod drawn by Sure85, Electrone
Dealers accepted a bill for Rs. 30,000 at 3 months. Period
31st December 1985, Electronic dealers submitted an Account Sales d&Co

300pieces sold@Rs. 160 each,

S0 pieces sold@Rs. 150 each.
The Account sales also disclosed that the Electronic Dealers has nia
changes Rs. 900. They send a draft for the net amount due.
You are required to prepare
Consignment Alc and the Consignee's A/c in the books ofSuresh&Co
B.Com Karnataka, April 14
Ans: Profit Consignmeat: Ra 1079
on

of
Value unsokd stock: Ra
13,70
Amount due from Electronic Dealer : Rs 19.
31. Appalaswamy of Vizag sends 150 Sewing machines on Consignment to Satyanarn
of Kakinada. The cost of each machine is Rs. 200. But ts invoice price is Rs.20
Appalaswamy pays Rs. 600 towards packing and despatch. Satyanarayana receiv
the Consignment and immediately accepts Appalaswamy's bill for Rs. 12,00. Late
informs Appalaswamy that 113 machines have been sold at Rs. 3
Satyanarayana
each. He paid freight Rs. 250; Advertisement Rs. 80; Insurance Rs. 40 and Ca

Rs. 20. He is entitled to a Commission of 6% on Sales and 2% as del crete

Commission. Give Joumal entries in the

books of both the Parties and prepare necesany
accounts.
B.Com Andkra, Aprl 19
Ans: Profit on Consigument: Rs. &B834
Rs. 9,46A.%
Value of unsokd stock:
Rs. 19,869.24 his
Commission: Rs 29%2
Amount dae from Consignee
:
Stock Reserve: Rs1
epeno
treated as direct
and camiage expenses of
Consignee are both
Hint: Freight Thirumalof Ma
Rs. 120 each to
1,000 bicycles costing linsu
32. Raj &Co., Consigned & Co. paid freight Rs. 10,000 and
invoice price of Rs.
150 each. Raj
an months bill for Rs.
60,000 on 1 hirun A
drew a 3 and pad d
Rs. 1,500. It immediately delivery of the cycles
at
took
discounted at 12% p.a. Thirumal that 800 cyciesenited
Account sales showing
Later he sent
Rs. 2,00pay cestof
an
Customs duty. etc.
Advertisement
the o
incurred on Rent, could not
250 each. Expenses credit customers
C o m m i s s i o n of 5%.
One of the Consignor. Non
a in the books of
bicycles. Write up the joumal
and ledger BCom.
Bharathia,
 2591
[Ans: Profit on
Consignment : Rs. 68,23
Amount due from Thirumal: Rs. 1,13,60o
Bad debts 250: Ra.
5x 1,250
reccivable is debited to Consignment Alc.
Discouni.
Lid.
of Bombay appointed D of Delhi as its selling agent on
ofBom
cles

Hindustan

wing terms
at
invoice price or over.
be sold
ds
Gosied
to
to a commission of 7% on the invoice price and 20% of any
e n t i t l e d
6
be
D
s ut
rop l u sp r i c e r e a l i s e d .

(b)
draw on the agent
a bill for 809% of the i
nrincipal to
price.
thousan bicycles were consigned to D, each
ugust
1968, One bicycle
on st including freight and invoiced at Rs. 800. Before 31st December 1968
ingncipal's books are closed) D met his acceptance on the due date, sold off
theprinci)an average price of Rs. 930 per bicycle the sale expenses being

due by means
of a bank draft.
bicycles .

the amount
remited
and
R 12.500 means
of ledger
accounts how there transactions would appear in the
Show by
consignor.

of tne
books
Delh, HSC 1970
[Ans: Profit: Rs. 1,58,060; Clsing Stock Rs. 1,4,00;
Stock Reserve: Rs. 28,800; Amount dae
from coasignee Rs. 42,86
Total Commission: Rs. 67,240
4. Exporting company of New Delhi consignedRS.300600bales of clothits invoice
to John Smith of

Bombay on Ist October,

1984. Cost price was per bale, price was
a manner as to make 20%% profit on sale.
fixed in such
2
On 31st December, 1984, Consignee informed that he has sold nds goods
29%profiton sale price and he has spent Rs. 2,000 on Cariage and Rs. 1,00 on sales
eapenses. Consignor spent Rs. 900 as expenses.

On consignment, consignee gets 5% commission on sales and he gets share of

E profit which remains after deduction of all the expenses including consignee s
ASion. John Smith sent cash for the amount due on consignment on Sist
December, 1984.
Tepare consignment to
Bombay Account.
IMahatma Gandh, B.Com. April 1988
Ans: Invoice price of goods sent: Rs. 2,25,000;
Sales Rs. 1,60,000; Stock Rs. 75,967;
Commission Rs. 8,000;
COnsigmee's share of profit Rs. 7,267; Profit Rs. 21,800
2592 Financial Accoun
1996, X of Delhi consigned
to "Y of Bombny goodh for . sale
35.On It January ol 4% on inveoice price nnd 20% o" invoica
to Commission
price. Y is entitled were consigned to Bombay at urpl
Goods costing Rs. 12,0OA)
price realised.
The expenses of the Consignment amounted t ic
On 31st Rs.
price of 14,400.
March, 1996, an Account Sales was received from Y showine that he had

effected sales of Rs. 12,000 in respect of quantity

th of the quantity of
f goods
goods
conmigped
amounted to Rs. 600. Y accepted a
him.His actual of pocket expenses
out hit

remitted the balance due from him in Cash.

by X for Rs. 5,000 and
Give Consignment Account and Y's Account in the books of X.

Bharathidasan, B.Com, April 199; Nov

Ans: Proit: Rs. 978; Closing Stock: Ra.
1998
33
Stoek Reserve: Ra.
600
Total Commission : Rs. 672; Cash sent by Consignee: Ra. 487
36. Niranjan sent goods to Madhukar to be sold on consignment basis. The invoica
of the goods was Rs. 24,000, which was 20% above cost. Madhukar was entite
aCommission of 5% on the invoice price ofthe goods, and15%ofany exces amou
realised. He was to be reimbursed for expenses. Madhukar paid Rs. 920 as freight and
received the goods. He had also paid Rs. 500 as godown rent and insurance. He sold
S/8 of the goods for Rs. 19,000. As part of the goods were sold on credit, he reponted
that there was a bad debt for Rs. 600. He settled the account by sending a barnk drat
for the net amount due to Niranjan.
Show ledger accounts in the books of both the parties.

B.Com Andhre, April 198

Ans: Profit on Consignment: Rs 3,47
Amount due from Madhukar: Rs. 16230
Value of unsold Stock: Ra 9,345
37. Dhingra Bros. of Delhi consigned 1,000 bales ofcotton to Mongra &Sons of Madtru
at Rs. 120 per bale. The cost price of each bale is Rs. 100. Expenses on the consignment
incurred by the consignor were: Freight Rs. 2,000 and carriage and insurance
Rs. 1,000. Mongra & Sons in Madras were working as del credere agents. Their

ordinary commission was S% and del credere Commission 7% Ma. Mongs&

Sons paid by cheque Rs. 50,000 as an advance to Dhingra Bros. of Delhi immediae)y
on receipt of the consignment of goods.
Exactly ater six months an 'Account Sales' was received by Dhingra Bros. giving
the following information:
(Sale proceedsof750 bales Rs. 1,50,000
(b) Stock of unsold goods in hand 250 bales.
 nmeniAccOunts
2593

charged at
agreed rates of 5% and 7%
remmission

amounted to Rs. 1,200

expenses
signee's
sent by Mongra & Sons
sent by in settlement of
tA
he
Bank
draft
was

a c c o u n ts a l e s .
account alongvwith
to show (a) the necessary joumal entries in the books of
account and (c) Mongra & Sons accountDhingra
nquired

tu
a e
ignment to Madras
in the

IDelhi, HSC 1963

Ans: Profit: Rs. 52,800; Closing Stock: Rs. 30,750;
Deserve : Rs. 5,000; Amount sent
for settlement: Rs. 80,050
are taken as indirect
H:Consignee
s expenses expenses.
B rLal& Co. of Delhi consigned 1,000 tins of pure ghee costing Rs. 60 per
8ent Banral Ghee Stores at Calcutta. The tins were invoiced as proforma
ar The agents sold 400 tins at Rs. 80 per tin for cash; 400 tins at Rs.
o
Ueira

82
R 0Pr
on credit. and they took over the balance to their own stock at Rs.
82 per tin.
dar Lal &Co.paid freight and cariage Rs. S00 and Miscellaneous Expenses
200. They drew on Bansal Ghee stores at 3 months for Rs. 45,000 which was
ented by the letter. The expenses incured by the Bansal Ghee stores were
e Rs. 50; Octroi Rs. 40; Sorage Ks. g Miscellaneous Rs. 100. They were
ed 105 per cent commission and 2 per cent del credere commission on total gres
si proceds.They sent their account sales' to their principal showing as a deduction
Arefirom their commission and the various expenses incurred by them. Amonth later
Jthe debtors except one who owed Rs. 200 paid cash and the Bansal Ghee stores
rmitod the amount due on consignment. ShoOw the joumal entries in the books of the
cnsignor and the consignee's account and the consignment account in the consignor's

IDelk, B.A.
Ans: Profit on Consigament Rs. 14,516
. His Master's voice Radio & Co. of Calcutta Consigned to Suresh & Bros. of Ajmer
0 radios valued at Rs. 250 each on 8th January 1999. The cost of radio was
OWEver, RS. 210 each only. Railway charges and other expenses amounted to Rs. 400
Cacuta The
consignee the paid following expenses
Rs.
Freight 250
Insurance 150
Octroi 40
Selling Expenses 175
 94
During two months ended 28th Feb. 1999 Suresh & Bros. sold 1e Financial Accountin untin

average price of Rs. 275 cach. They charged

a Commission off 5% radios at an
and del
Commission of 2 , % on all sales and remitea ihe balance diue on 28Rth t
credere
28th February
Record the transactions in the ledger of both the parties.

IAns:Profit on signment:U.PF
Rs. oard)
Amount remitted Rs. :
in 37,541
books of Ramesh showed a
40. On 1-4-2000 the consignment account the debit
of Rs. 3,750 which represented the invoice valve of50 clocks at 259% abe balan.
he sent another consignment to Suresh which consisted 2s Cost
4th April. of
the invoice price of Rs. 75 each which was 25% above e cost. 2,500 clocks at
packing. Rs. 500 for insurance and Rs. 3,000 for carriage and freight. Surees
the Consignment on 20th April and paid Rs. 3,000 for customs duty Suresh received
He also sent a draft for 50% of the invoice price of the goods received.
By July 30. Suresh could sell the Opening stock at Rs. 85 each on Cred,
clearing
2.450 of the new Consignment at Rs. 90 each. His expenses were and
Rs. 4,000 and godown rent Rs. 250. He is entitled to a Commission of R advertiserme
He could not recover Rs. 250 on account of credit sales.
Show the necessary ledger accounts in the booKS of Ramesh
and Suresh A/c)
(Consignment a

IPerlyar, B.com. Now. /Dec. 2001

[Ans: Profit: Rs. 44,920; Closing Stock: Rs.
3,900
Closing Stock Reserve Rs. 750; Consignee's Commission: Rs. 17.0
:

Amount due from Consignee: Rs.

1,05,520;
Opening Stock Reserve: Rs. 750
Hint: Bad debts has to be borme by Consignor.
41. Ram & Co. of Delhi sent on Consignment to their agent in Calcutta goods invoiced at
Rs. 45,000, this being the selling price of the consignment obtained by
adding 30% to
the cost price to cover expenses, profit and selling commission.
At the end of six months the agent remitted the sum of Rs. 12,000 made as under:
Rs. Rs.
Proceeds of goods sold 13,000
Less: 5% Commission 650
Expenses 350
1,000

Rs. 12,000
sgniment ACCOunts

treported that goods ofthe invoice value 25.95

of Rs. 600
sent a stock still held
list ofs had been
transit,
and he
amounting to totally
Rs. 31,400.
din
snagedi
Givethejournalentriesnecessary to recordtthese details in the books of consignon.

Al Indla HSC
[Ans: Profit on Consigament: Rs.
2,000;
Abnormal Loss at
Iovoice price: Rs. 600
at Cost Rs.
462; Loading : Rs. 138;
Value of Unsold Stock: Rs.
31,400;
Stock Reserve:
Rs. 7,246
d 100
100 T.V.
T. V. Sets,
Sets, each
e costing Rs. 3,000 at Rs. 4,000 to Shanti of
consigned
Ranjani Ranjani spent Rs. 5,000towards freight and insurance. During transit, 5T.V.
Chenna

and insurance company accepted the claim for Rs.

ere badly damaged 18,000

remaining5 sets and spent Rs.

hnti took delivery of the indirect 1,900 towards direct
expenses.
nTEnses and Rs. 800 towards
to 5% Commission on sales. 80 T.V. sets were sold at Rs. 4,500
Chanti is entitled

cach
in the books of Ranjani and Shanti.
Give Journal entries
Manonmanian, B.Com. April 1998)

at Iavoice price: Rs. 20,250; at cost:Rs. 15,256;

Ans: Abaormal Loss Rs. 15,00; Profit : Rs. 95,6009
Stock Reserve :
Closing Stock : Rs. 61,050; at an
account goods to B & Co. of Mumbai
sent on Consignment
6. A&Co. ofCalcutta for freight Rs. 762, Cartage
Rs. 232, and Insurance

ivoice price of Rs. 29,675 and paid Rs. 17,500, Subject to

the
agents
sold agents for
s 700. Half the goods were by other selling expenses of
of Rs. 200, and
COmmission of Rs. 875, Storage
expenses
and a claim of Rs. 5,000 was
was lost by fire,
consignment
.50. One-fourth ofthe accounts in the
books of A& Co.
and ascertain the
month bill of
the
eL. Draw up necessary The consignor
received a two
25%% pront on
made on consignment. sent include
0SS
rom the agents in satisfaction ofthe dues. Goods
ge
OSt.
Madural,
April200
B.Com

7,842;
3,357; Closing Stock:Rs.
Profit: Rs. Rs. 1,484;
Ans: Reserve:
Stock
Rs. 7,842;
price:
Loss at Invoice
Abnormal Rs. 1,484
Loading:
Rs. 6,358;
at Cost:
unrecovered Abnormal Loss.

Hiant:P c will be debited with Rs.

 25.96
September. 1989 goods
which cost 'X' Rs.: 33,000 Financial Acouni
were
44. On Ist
his agent
' Y at a profoma
priCe
to Rs. 1,250.
which was

'Y' was
20 %
allo Cost X
D paid consigned ty him
freight charges
amounting
oommissIOn
on gross sales and 3% del 1000 per annum
inmurance t
establishment
also
cost,
o commission on the
allowed CxIra profit on credere
such commtwA
ignimentchaninwra1a
conslanding
Y incumed an nse
He was
such
commission. expense of Rs. 225
c

after charging as

Threce-fourths ofgoods
re
were sold at
sold at 33%
33% profit on cost half charge
was damaged and.

credit. Half of the balance ot goods cla

discouim on
was
made for Rs. 4,400
was
which settled at

prepare a consignment account and

a
10%. urance comamy
You a r e required
to
an
an

abnormal loss
.

the books of X for the year ended 31st December, 1989.

n
accom
IAns: Profit: Rs. 3,356; Abnormal Loss at
Invoice price ICA.
R
ImMe
Cost: Rs. :

Value of
4,309; Loading S4
unsold stock
Commission (8%) : Rs. 2,640; Extra :
Ra S1
Su4
45. On Ist September 1989, gO0ds of cost price of Rs. 65.000 Commi
were
ssion :R
agent "S'in Amnisarprotoma invoice of 20%
at a
cost. "S' by " oi
consigned
and other forwarding arges amounting to Rs. 2,000. He wasabove
Delhi to
allowed paid freig
1,000 per annum towards establishment cost, % Commission on gross sa
Rs
del creder mission. 'S' paid Rs. 500 as rent of godown for the three
31-12-1989. months ende

Three-fourths of the goods were sold at 33% profit on cost, halfofwhi

fwhich we
credit sales. Half the balance of goods was stolen but the stock being insurda.
clin
lodged for Rs. 7,000 was settled for Rs. 6,900. Balance of Stock was valds
Proforma invoice price.
Write up the Consignment account and stock lost on consignment account as
31st December 10, 1989 in the books of 'S' of Delhi.
Delhi, BCom
ABs: Profit: Rs. 8,050; ClosingStock at Iavoice price : R 140
Abmormal Lo8s at invoice prie: R. 0
at Cost: Rs. 8,375; Loading: Rs 16
46. Mr. Achut of Bombay consigned 100 units ofa commodity to Mr. Rao of Delh
8oods were invoiced at Rs. 150 so as to yield a profit of 50 per cent o
Mr. Achut incurred Rs. 1,000 on freight and insurance. Mr. Rao incuT
1989 he sold 50 unis
reight and Rs. 800 on rent. Before 31st December,retained his
RS. 160 per unit, 20 units for Rs. 175 on credit. Heall sales Commst d the
balanr"

and I per cent for the del credere arrangements on ana t acounto
3Ist December 1989. Mr. Rao noticed that 10 units were damag R 10
for Rs. 80 per unit.
A debtor f
packing and he could sell them only
 counts
2 N S I I I I C tA c c o u

gOds
were sold by Mr. Rao
became insolvent and only 25 97
i o n s for Mr. Ra0 sent
on account
an that sales 50 paise
e d . the quarter
ed.
arter
ended date a
ended an that date and
S Decemhe
he
paise
1989 detailing
inn aa rupee
i the
remitted the
deer entries in the books of Mr.
balance he i

Achut and
Make nclases his books every 3Ist December. Mr. Rao, assuming

Ans: Proit: 1,960; Abnormal Loss at Invoice ICARs.Inter

Rs.

at Cost: Rs. 398; (200+ 48+ 150); price: 898

Value of unsoldLoading:
Ra. 500
stoek: Rs.
4,052