Accounting For Consignment
The owner sends the products to his agent or brokers on sure phrases and circumstances. The brokers sell the merchandise and calculate the amount acquired from precise sales. He deducts from this amount the bills incurred by him on behalf of his precept and fee. The agent submits a written assertion periodically (UPBoardSolutions.com) to his principle specifying the main points of products bought, expenses made and commission deducted. Deepak of Delhi sent items on consignment to Vivek of Ranchi and cost profit on proforma bill worth at 25% on price.
- The firm paid Rs zero.50 per quintal for loading and Rs three.50 per quintal for railway freight, an account sales was acquired from Mr. Rakesh Sales Ltd. showing 800 quintals coal offered at Rs 60 per quintal.
- Sales bills Rs 1,600, insurance Rs 200, brokerage @ 2% and fee @ 5%.
- Prepare the required accounts within the books of M Coal company.
- The M Coal Co. consigned to Mr. Rakesh Sales Ltd. 1,000 quintals of coal at invoice value of Rs 40 per quintal.
- Mr. Rakesh of Jaipur appoints Mr. Anil of Bhilwara as his promoting agent.
- The agent remitted the amount payable by a bank draft and reported a shortage of 20 quintals of coal on the whole consignment.
Mayank Radio Co. sold 700 radio @ Rs 750 per radio. In course of transit 50 radio damaged and agent declare to Insurance Company.
The M Coal Co. consigned to Mr. Rakesh Sales Ltd. 1,000 quintals of coal at invoice value of Rs forty per quintal. The firm paid Rs 0.50 per quintal for loading and Rs three.50 per quintal for railway freight, an account gross sales was acquired from Mr. Rakesh Sales Ltd. exhibiting 800 quintals coal bought at Rs 60 per quintal.
(aa Financial Accounting Basics
ninety washing machines have been offered in Rs 9,45,000 and the remaining amount was despatched by financial institution draft. Prepare consignment account within the books of consigner, if the accounting of products is completed on bill value. Sony consigned items to Bravia costing Rs. .
Account sale is ready on the printed types according to the business customs.Question 3. Prakash store from Delhi sent 100 https://1investing.in/main/write-quick-notes-on-overriding-commission-and-del/ washing machines @ Rs 7,500 at the bill worth of Rs 9,375 to Ajmer Electric Stores, consigner paid Rs 15,000 for freight and insurance.
Rbse Solutions For Class 12 Accountancy Chapter 8 Consignment Accounts
This is distributed to purchaser month-to-month or quarterly or half-yearly.three. The account sale is shipped by the agent after promoting the whole items or periodically.4. Only the amount sent, the amount acquired arid the steadiness of amount to be paid is shown.four. Under this, the expenses incurred by the agent and his fee is deducted from the quantity of sale and the amount despatched to the principal by draft is stated.5. Statement of account is a duplicate of the debtor’s account within the seller’s ledger.5.
Sometimes the principal gives further commission to the agent for the recovery of credit sales made by him. There are possibilities of dangerous-money owed out of credit gross sales. In order to compensate him for unhealthy-money owed loss, some extra commission is given which is called Del Credere Commission.
What Is Account Sales In Consignment?
Consignee will get 10% on sale of invoice worth and 25% commission on more than bill value. Consigner paid Rs 4,000 of Octroi and Rs 5,500 of sales bills.
This is for the uncomplicated argue that the consignee sells items an agent of the consignor. This extra committee s identified along with del credere commission. In this example, the consignees whether he to behave the loss debt turns into bad or irrecoverable.
the professional forma bill was made to show a revenue of 25 % on value. Bravia bought part of the consignment for Rs. at a value of 10 % over bill price, and also spent Rs. on warehouse and Rs. 3000 on advertising. Bravia is entitled to a fee bitcoin bonus of 5 % on sales and 20 % of the web revenue after charging such fee on sales. Kamal Traders consigned 2000 greens oil tin @ Rs 1,four hundred per tin at value to Himanshi Traders and paid railway freight Rs 20,000.
A sum of Rs 10,000 is acquired from insurance company as a declare. Agent took delivery of remaining items and paid to Rs 19,000 for octroi and Rs three del credere commission is calculated on,000 as selling expenses. He sold 1,700 tins @ Rs 1,500 per tin and charged Rs 20 per tin sold as commission.
Expenses Incurred By Consignee But Are Not Reimbursable
Mr. Rakesh of Jaipur appoints Mr. Anil of Bhilwara as his selling agent. Rakesh consigned one hundred cellular set @ Rs three del credere commission is calculated on,000 every set despatched to Anil. Rakesh paid expenses Rs 2,800 and Anil paid clearing charges Rs 1,200.
On 1st October 2020, Kim of Manchester consigned items costing $50,000 to Harry of Bristol. Kim paid $120 as railway freight and $150 as insurance coverage. On 31 December 2020, an account gross sales was obtained from Harry exhibiting that each one the products had been https://www.google.com/search?q=del credere commission is calculated on bought for $seventy five,000 – out of which, $20,000 have been offered on credit score. Harry paid $a hundred and fifteen as carriage and $a hundred twenty five as storage expenses. Del credere fee is expounded to credit score gross sales.
Sales expenses Rs 1,600, insurance coverage Rs 200, brokerage @ 2% and commission @ 5%. The agent remitted the amount payable by a bank draft and reported a shortage of 20 quintals of coal on the entire consignment. Prepare the mandatory accounts in the books of M Coal firm.
Agent obtained commission on invoice price at 10% and above bill worth 25%. Prepare Consignment account in the books of consignment. 600 cycles have beaxy custody been consigned to Chandra Cycle Store, Chittorgarh for Rs 200 per cycle which was at bill price Rs 250 per cycle. Chandra Cycle Store met his acceptance on due date.
Chandra Cycle Store sold 540 cycles @ Rs 280 per cycle. His selling expenses Rs 1,250 and he remitted the amount due by a bank draft. The Balance stock was valued at eighty% as a result of damaged attributable to rains. Prepare the required ledger accounts within the books of the both events.
Rajasthan Store sold goods Rs forty,000 on credit score and Rs 24,000 for money. Stock of bill price Rs 16,000 stays unsold. 5% fee on total sales and 3% delcredere commission on credit gross sales is payable to consignee.
Prepare Consignment account and Abnormal Loss account within the books of consignor. Chandan rendered to their principal an account sale exhibiting that 60 instances have been bought for Rs 14,000 and paid brokerage at 1.5%. The agent after deducting the expenses incurred by him and his commission at 5% on product sales proceeds, remitted the balance due by bank draft. Record the above transactions within the ledger of each events.
The statements which the selling agent prepares and submits to his principal is called ‘Account Sale’. The account sale offers details and the values of the gross sales and of expenses incurred by the agent to his principal. Mahesh sells items on behalf of Vijai Sales Corporation on consignment foundation.
On 1 January, 2015, he had with him a inventory of Rs 20,000 on consignment. During the 12 months ended 31, December, 2015 cash sales had been Rs 1,20,000 and credit gross sales Rs 1,05,000.