Illustration 1 Arun sent goods worth 75,00,000 to Bharath and paid 5,000 for packing,

79,000 for carriage and 3,000 for insurance. Bharath received the goods and incurred further
carriage of R2,000, unloading charges, T1,.000, rent for storage, 20,000 and selling expenses
3,000. Bharath sold 75% of the goods for 8,00,000. Calculate the value of closing stock.
 Illustration 2 Bhavya of Bangarpet sends 1,000 Kgs. of oil at 1 30per Kg to Chetan of
Chintamani. The Consignor spent 7,500on cartage insurance and freight. On the way 50
Kgs, of oil was lost (normal loss) due to leakage. Chetan took delivery of the consignment
and spent 5,000 on octroi and carriage. His selling expenses were 4,000 on 800 Kgs of oil
sold. Determine the value of stock.
Solution:: (Normal loss)
 lustration 5. 5,000 watches costing 200 per unit were sent on consignment. Consignor
transit.
spent 3,000 on insurance and transport. 150 watches, were destroyed during
Consignee incurred the following expenses in connection with consignment:
(a) 10,000 by way of Duty and Clearing charges,
(b) 5,000 by way of Advertisement
Consignee sold 3,850 watches.
Findout the value of abnormal loss and consignment stock. (Abnormal loss)
 Ilustration 7 (Normal and Abnormal loss) Indian Oil Corporation consigned 10,000
Iitres of diesel from Malur to Karthic Petrol Bunk of Bangarpet at a cost of ?55 per litre and
incurred carriage of 4,000 and excise duty of ZI,000. Karthic paid 3,000 for insurance and
1,000 wages to the driver of the truck. Karthic reported that while unloading, due to
negligence of the driver, 10 litres of diesel was lost and another 40 litres of diesel was found
shortage. Karthic sold 9,000 litres at 57 per litre and remitted the balance amount after
adjusting 5% commission and his expenses. (Normal and Abnormal loss)
Ascertain the value of abnormal loss and closing stock.
 Illustration 9 Aloknath of Bombay consigned 100 cases of goods to Ramnath of
to be sold on his risk. The cost of one case of goods was 1,500. Aloknath paid freight Madras
6,000
and insurance *2,000. Ramnath sent a Bank draft to
Aloknath for 1,00,000 as advance and
sent an Account Sales showing that 80 cases was sold at 2,200 each.
Ramnath were carriage 1,000. Godown rent 5.000 and advertisement Expenses
3,000. He
incurred by
is entitled
to a commission of 5% on sales.
Prepare consignment a/c and Consignee's alc (BU-May-92)
Solution:
Kuustration 13 M/s RaghuandCo, of Deli eonsigned on 15th March 2012, 45 cases of
Zglass at costprice of 745,000 to Reddy and Co. of Hyderabad for sale on commission at 5%
on gross sale proceeds. The consignor paid freight and carriage amounting to 539,
The goods arrived at Hyderbad on 20March 2012, Reddy and Co, paid clearing charges
235, Sundry charges 59, carriage 102 and godown charges 90.
The goods were sold by Reddy and Co. as under
15 cases att1,000 per case, 22 cases att 1,050 per case and the remaining 8 cases at1,250
per casSe.
On June 21 2012, Reddy and Co. sent a draft forr 10,000 to M/s Raghu and Co. on
account. On 1"July 2012, Reddy and Co. forwarded an account sales together with a Billof
Exchange for the balance.
Prepare ledger accounts and give journal entries to record the above transactions in the
books of consignor and consignee. Calculations are to be made to the nearest Rupee.
(B.U. May-15 -14 marks)(Without Normal loss/Abnormal Loss)
 VHustration 25_(Gulbarga University-2009) Mohan of Bombay consigned goods to
Harish of Hubli at a proforma invoice priceat 780,000which is 25% above the cost price. He
paid 24,000towards freight and 2,400 towards insurance and other charges.
Harish took delivery of the goods and paid unloading charges and entry tax T800, His
other expenses were godown rent Z400 and selling expenses T800. He sold 3/4th goods for
792,000.
He is entitled to an ordinary commission of 5% and a
del credere commission of 0 n
sales. He sent a bank draft for the balance to Mohan.
Prepare necessary ledger accounts.
 llustration 28 Seema & Co., consigned 100 tins of ghee costing 1,600 per tin to their
agents Gangothri Stores at Kolkata. The tins were invoiced at proforma1,800 per tin. The
agents sold 40 tins at 1,800 per tin for cash, 40 tins at 1,820 per tin on credit and they took
over the balance to their own stock at 1,820 per tin. Seema &Co. paid freight and carriage
4,000 and miscellaneous T1,000. They drew on Gangothri Stores at 3 months for 1,00,000
which was duly accepted by the latter. The expenses incurred bythe GangothriStores were
Carriage 500, Octroi 2400, storage 1,100. Miscellaneous 1,000. They were entitled to 5%
commission and 2% del credere commission on total gross sale proceeds. They sent their
Account sales to their principal showing as a deduction there from their commission and the
various expenses incurred by them. A month later all the debtors except one who owed
2,000, paid cash and the Gangothri Stores remitted the amount due on consignment.
Prepare the necessary accounts inthe Books of the consignor and the consignee.
Solution: