Scribd
Upload
101 views

Consignment Questions

Uploaded by

S.M.ABDULLAH SHAH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
101 views

Consignment Questions

Uploaded by

S.M.ABDULLAH SHAH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Consignment Account

Q.1 Mr. Sarwar of Rawalpindi consigned goods valued at Rs. 25000/- to Mr.
Munir of Karachi. Consignor paid Rs. 1140/- for freight and insurance. After
one month, he received account sales intimating that half the consignment
was sold at Rs. 20000/-. The expenses incurrent by him were Rs. 500/- and
commission was allowed 5% on sales. Consignee settled his account by
cheque.
Required: Show the journal entries also prepare consignment account and
consignee's account in the books of consignor.

Q.2 Awais sent goods to Afzal costing Rs.4000/- The expenses incurred by
Awais were Rs.200/- He received an account sale showing that half of the
consignment was sold at Rs 3600/- The expenses incurred by Afzal were
freight Rs.60/- insurance Rs.40 and other expenses Rs.20 His commission was
10% on sales.
Required: Record the above transactions in Awais journal and also prepare
consignment account.

Q.3 Mr. Ali dispatches to Mr. Qadir 1000 bags costing Rs,20 each. Mr. Akbar
pays Rs.900 for insurance and Rs.200/- on packing. On receipt of bags Mr.
Qadir spends Rs.700/- on freight, Rs.100 on octroi and Rs. 100 on cartage.
Mr. Qadir sells 900 bags at Rs.50 each. 100 bags remained unsold at the close
of the year December 31,2019. Mr. Qadir sends to Mr. Akbar an account sale
along with a bank draft. He is entitled to a commission of 15% on sales.
Required: Record the transactions in the Mr. Akbar's books and prepare
consignment account.

Q.4 Haleema Khan sent to Shazia Khan 100 radio sets for sale on
consignment. The cost of each set 1s 2000 for freight, Rs. 1000 for
insurance and Rs. 500 for cartage. Account sale 3500 being paid Rs.
2000 revealed showing that 80 sets were sold for Rs. 700 each.
The consignee incurred the following expenses. Clearing charges Rs.
100 rent Rs. 200. Salesman payment Rs. 1000. Consignee will
receive her commission at the rate of 5% of the gross sales.
Consignee paid due amount through draft.
Required: Record the above transaction in the books of consignor
and ascertain profit or loss on consignment with ledgers.

Q.5 Riaz of Lahore sent goods on consignment to Rashid of


Peshawar costing Rs. 2000. The expenses incurred by Riaz were Rs.
100. He received an account sale showing that half of the
consignment was sold at Rs. 1800. The expenses incurred by Rashid
were freight Rs. 30, insurance Rs. 18, and other expenses Rs. 10. His
commission was 6% on sales and 2% del - credere commission.
Record the above transactions in Riaz's journal, also give the
necessary ledger accounts.

Q.6 Mr. Kamal dispatched to Mr. Fraz 1000 fountain pens costing
Rs. 20 each. The consignor paid Rs. 900 for insurance in transit and
Rs. 200 on special packing. On receiving fountain pens consignee
spent Rs. 700 on freight, Rs. 100 on octroi and Rs. 100 on cartage.
He sold 900 fountain pens at Rs. 40 each. 100 pieces remained
unsold on 31st December, 2017 at the close of the year. Mr. Fraz
was entitled to a commission of 5% on sales. He sent a final bank
draft to the consignor.
Record the above transactions in Mr. Kamal's journal, also give
necessary ledger accounts.
Q.7 Mr. A sends goods to Mr. B for Rs. 50,000/- to be sold on
consignment basis. He paid for carriage Rs. 1000. All goods sold by
consignee Rs. 85000. He paid expenses on sales Rs.4000. He is
entitled 10% on sales.
Required: Pass necessary entries in the Books of Consignor and
prepare Consignment Account.

You might also like