| Originally posted by : Abhishek Kumar | ||
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X of kolkata sends out goods costing rs.300000 to Y of delhi. commission agreement-2% on sales+3% on sales as del -credere commission. the entire goods is sold by consignee for rs. 4 lacs. however, consignee is able to recover rs.395000 from the debtors. the amount of profit to be transferred to p/l as net commission by consignee will be______? please rply |
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When the consignee is in receipt of del-credere commission, loss on account of bad debts is born by the consignee.
.
The amount to be transferred to P/L A/c by consignee in that case will be:
= Gross Commission Received – Loss on account of Bad Debts
.
So, in given Case:
|
Gross Commission Received (Rs. 400000 x 5%) |
20000 |
|
Less: Loss on Account of Bad Debts (Rs. 400000 – Rs. 395000) |
5000 |
|
Net amount to be transferred to General P/L |
15000 |
Naveen Fintech Pvt Ltd
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Gupta Sachdeva & Co. Chartered Accountants
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