Consignment problem

CPT 2540 views 4 replies

RishebhKumar

Studying

128 Points Joined May 2012

Q. Rabin consigned goods for the value of Rs.8250 to Raj of Kanpur paid freight etc. of Rs.650 and insurance Rs.400.Drew a bill on Raj at 3 months after date for Rs.3000 as an advance against consignment and discounted the bill for Rs.2960. Received account sales from Raj showing that part of the goods had realized gross Rs.8350 and that his expenses and commission amounted to Rs.870. The stock unsold was valued at Rs.2750. Consignee wants to remit a draft for the amount due. The draft will be….?

Q.X of Kolkata sends out goods costing Rs.100000 to Y of delhi. 3/5^th of the goods were sold by consignee for Rs.70000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of Commission will be…?

I want to understand the solution so plz explain each and every working note and the answer you arrive.

Thanks in Advance..

Replies (4)

intermediate(ipc)course

1460 Points Joined August 2009

draft will be 930.prepare a consignment a\c dr side sum is = 8250+650+400+870+930+40 = 10210

sum of cr side = 2750+8350 = 11100

draft = 10210-11100 = 890

intermediate(ipc)course

1460 Points Joined August 2009

commission = 2% of 70000+20% of 70000 - nil

= 1400+14000 - nil

= 15400

NOTE: as 1400+14000 = 15400 that is less tan 100000\- so all commission exceeds cost price is nil.

Tejaswi Kasturi

student-cpt

427 Points Joined April 2012

1.to find out the amount sent to the consignor, you have to prepare consignee's ledger account. we will debit 3000 to consignee on receiving the acceptance of bill and debit 870 to consignee after receiving of account sales for his commission and expenses. now we will credit his account by 8350 for the sales amount. balance is what he should send us to settle the account. i.e. 8350 - 870 -3000 =4480

2.2% of gross sales is 2/100*70000 = 1400 now to calculate profit above cost. 3/5th goods will be costing 3/5*(100000)=60000 so surplus is 70000-60000 = 10000. now we have to lessen the commission on gross sales i.e. 1400 so surplus is 10000-1400 = 8600. now we have to pay commission of 20% after paying commission (since this commission should also be deducted) so commission = 20/120*8600 = 1433.33 so total commission is 2833.33