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Consignment Accounts
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Consignment Accounts
Very Short Answer Questions
Q2. Parties in Consignment
Q5. Delecredere commission
Q6. Overriding commission
Q1. Distinguish the differences between the Consignment and Sale
Q2. How the unsold stock is valued in consignment?
Q3. How the abnormal loss is valued in consignment?
Q4. List out some of the recurring and non-recurringexpenses of the consignor and consignee
Q5. Proforma of Consignment account in the books of Consignor
Q1. The cost of price of goods is 20,000. But the invoice price of the goods is 24,000. Find the loading?
Q2. The cost of the goods sent on consignment is Rs.20, 000 but the invoice price is 10% more than the cost price, what will be the invoice price of the goods?
Q3. Jeevan Surya sent goods on consignment of invoice price Rs. 15,000. This price is 20% more than the cost price. What will be cost price of the goods?
Q4. 500 cases of goods were consigned at a cost of Rs. 150 each. The consignor paid Rs. 2,000 towards insurance and freight. The consignee paid Rs.2, 000 for carriage and Rs1, 000 for salaries. Consignee sold only 400 cases of goods. Find the value of unsold goods?
Q5. Hardhikpatil consigned goods costing Rs. 50,000 to Vidhvanpatilwhose recurring and non-recurring expenses on the same amounted to Rs. 5,000 and Rs.2, 000 respectively. Vidhvanpatil sold 3/4the of the goods. Find the value of unsold goods?
Q6. Nidhi consigned 100 bales of cloth to Srikari at Rs. 1,000 per bale. Nidhiincurred the expenses Rs. 5,000. Srikari incurred Rs. 6,000 for packing and Rs. 2,000 for rent. Srikari sold 80 bales of cloth at the rate of Rs. 1,500 per bale. Ascertain the value of consignment stock?
Q7. Ascertain the value of closing stock from the following information. No. of units consigned: 5,000 Cost of each unit Rs. 10 Expenses of consignor Rs. 4,000 Expenses of consignee Rs. 1,000. No. of units sold by the consignee: 4,000
Q8. Anisa consigned goods costing Rs. 20,000 to Prasanna on consignment basis.Anisa paid the consignment was lost by fire. Rs.5, 000 for carriage and cartage. On the way 1/5 th of Ascertain the amount of abnormal loss.
Q9. 100 tons of coal is consigned at the rate of Rs. 900 per ton. Freight charges paid by the consignor amounted to Rs. 5,000. Loss due to loading and unloading of coal is estimated at 5 tons. 75 tons of coal is sold at the rate of Rs. 1, 200. Find the value of unsold stock.
Q10. Manasa consigned goods value of Rs. 60,000 to Suhas, Manasa paid transport charges Rs.4, 000. Suhas sent the account sales of consignment stating that the entire stock was sold for Rs. 75,000. He paid Rs.2, 000 for cartage. His is entitled commission of Rs. 3,000. He sent bank draft for the balance. Write journal entries in the books of both the parties.
Q11. Hari of Hyderabad consigned goods value Rs.30, 000 to Sumalatha of Surath. Hari paid for forwarding charges Rs. 1, 500 and drew a bill of two months on Sumalatha for Rs. 15, 000. The bill was discounted for Rs. 14,500. Sumalatha sent account sales of consignment stating that the entire stock was sold for Rs. 38,000, agent commission Rs. 2,000 and sent bank draft for the balance. Write journal entries in the books of both the parties.
Q12. Arjun of Kamareddy and Vittal of Karimnagar are in consignment business. Vittal sent goods to ArjunRs. 20,000. Vittal paid freight Rs.800, insurance Rs.700. Arjun met sales expenses Rs.750. Arjun sold the entire stock for Rs.30, 000 and he is entitled to a commission of 5% on sales. Prepare necessary ledger accounts in the books of Vittal and Arjun.
Q13. Shivabhiram of Secunderabad consigned to Anil of Vijayawada 100 boxes of medicines at Rs.500 each. Shivabhiram paid freight and insurance amounting to Rs. 2,500. Anil sent Rs.20, 000 as an advance payment against consignment. Shivabhiram received account sales from Anil containing the following particulars:( a) Gross sale proceeds are Rs. 74,000.b. (b)Transportation and warehousing charges Rs. 2,500.(c )commission charged at 10% on gross proceeds.Prepare necessary ledger accounts in the books of consignor and consignee.
Q14. Karthik of Karimnagar sent sports material worth Rs. 80,000 to Supreethon consignment basis. Karthik spent Rs. 2,000 for insurance, Supreeth while taking the goods spent Rs. 1,000 for transport and Rs. 1, 500 for Godown rent. 80% of stock was sold out. Calculate the value of unsold stock.
Q15. On 1 January, 2020 Srinu of Srinivasanagar consigned goods value Rs. 30,000 to Arun of Alwal. Srinu paid cartage and other expenses Rs.2, 000. On 31 March, 2020 Arun sent an account sales with the following information:(a). 50% of the goods sold for Rs. 25,000.(b). Arun incurred expenses Rs. 1,750.(c). Arun entitled to receive commission @ 6% on sales. Bank draft was enclosed for the balance due. Pass necessary journal entries in the books of both the parties.
Q16. On 1-1-2020 Balaji of Hyderabad consigned goods value at Rs. 50, 000 to Shivaji of Sholapur. Balaji paid cartage and other expenses Rs.2, 400. On 31-3-2020 sent the account sales with the following information.(a)3/4th of the goods sold for Rs. 48,000.(b). Shivaji incurred expenses amounting to Rs. 1,200.(c). Shivaji is entitled to receive commission @ 5% on sales. Bank draft was enclosed for the balance. Prepare necessary ledger accounts in the books of Balaji.
Q17. Amith& Co of New Delhi consigned 50 cell phones to Teja& Co. of Hyderabad. The cost of each cell phone was Rs 2,500. Amit& Co paid Insurance Rs.500, freight Rs.2, 500. An account sale was received from Teja& Co showing the sales of 40 cell phones at RS.3, 000 each. The following expenses were deducted by them; Selling expenses :Rs.1,600. Commission: Rs.3,000.Amith& Co received a bank draft for the balance due. Prepare important ledger accounts in the books of Amith& Co and Teja& Co.
Q18. Naveen of Agra sends 50 TV sets each costing Rs. 15, 000 to Sravan of Warangal to be sold on consignment basis. He incurred the following expenses: freight Rs.2, 000, loading charges Rs.2, 000 and insurance Rs. 5,000. Sravan sold 45 TVs for Rs. 7, 50,000 and paid Rs. 10,000 as shop rent, which is to be borne by Naveen as per terms and conditions of consignment. Consignee is entitled for a commission of Rs. 200 per TV sold. Assuming that, Sravan settled the account by sending the bank draft to Naveen. Prepare necessary ledger accounts in the books of Naveen and Sravan.
Q19. Akhil of Hyderabad consigned goods worth Rs. 20,000 to his agent Anil of Kamareddy on consignment. Akhil spent Rs. 1,000 on transport, Rs.500 on insurance. Anil sent Rs. 5,000 as advance. After two months, Akhil received the account sales as follows:(a). Half of the goods were sold for Rs.24, 000, of which Rs. 4,000 sold credit.(b). Selling expenses were Rs. 1,200. (c ). Ordinary commission 8% and delecredere commission 2% on sales.(d). Bad debts to be amounted to Rs. 400. Give ledger accounts in the books of both the parties.
Q20. Manaswi of Medak consigned 50 boxes of medicine to Vedhagna of yellareddy. The cost of each box is Rs.800 and invoice price is Rs. 1,000 each box. Manaswi paidRs.2, 500 for forwarding goods. Vedhagnaadvanced Rs. 25,000 to Vedhagna and sent account sales with the details sales 40 boxes at the rate of Rs. 1, 000 each. Selling expenses are Rs. 1, 000 and his commission is Rs. 1, 500. Pass necessary journal entries in the books of Manaswi.
Q21. Ragamai of Kochin consigned 200 cases of ayurvedic medicines to Sricharani of Hyderabad. The cost of each case is Rs. 400 but the invoice price is Rs.500 per case. Ragamai paid Rs.1. 200 towards packing and carriage. Sricharani informed through account sales that 180 cases are sold at Rs. 520 each. Expenses paid by Sricharani were freight Rs. 800. Commission has to be calculated at 5% on sales. Prepare Consignment account and consignee's account in the books of Ragamai.
Q22. Rajani of Nagpur consigned goods to Praveen of Patna. The value of Rs.40, 000 invoiced at 25% above the cost. Rajani paid Rs. 1, 500 for carriage and Rs. 500 for insurance. Rajani drew a bill on Praveen for Rs. 20,000 payable after 3 months and received Praveen's acceptance. Later, Rajani receivedaccount sales from Praveen stating the following: Total goods sold for Rs. 60,000 and the sales expenses Rs. 1,000 and his commission 5% on sales. Praveen deducted all the above and sent a cheque for remaining balance. Prepare necessary accounts in the books Rajaniand Praveen.
Q23. Reepthika Reddy sent goods to Rishika Reddy of Adilabad on consignment worth Rs. 30,000 at invoice price of cost plus 20%. Reepthika Reddy paid transport and insurance charges of Rs.800. Rishika Reddy sent an account sales by showing 3/4th goods are sold for Rs. 28,000 and sales expenses Rs. 700. She sent a draft for an amount due after deducting 5% commission. Give the necessary accounts in the books of both the parties.
Q24. Srinivas of Srinagar consigned 10,000 cases of tinned fruits costing Rs.75, 000 to Kiran of Kanpur on 1-1-2020 charging him a pro forma invoice price to show a profit of 25% on sales. Srinivas paid Rs.6, 000 towards freight. During the half year ending June, 30, 2020Kiran incurred Rs.4, 000 expenditure and reported sales of 8,000 cases for Rs. 82,000. Kiran was entitled to a commission of 5% on sales. He has sent a demand draft for the balance due to Srinivas. Prepare the necessary ledger accounts in the books of Srinivas.
Q25. Arun sent 100 sewing machines on a consignment basis to Tarun. The cost of each machine was Rs.300, but the consignor prepared the proforma invoice at 25% above the cost. The company spent Rs.800 on various expenses. After receiving the machines, Tarun had to spend Rs.950 for freight and Rs. 1, 100 for godown rent. By the end of the year Tarun sold 80 Machines @ Rs.410 per machine. He was entitled to a commission of 5% on sales. Prepare necessary accounts in the books of Arun.
Q26. 500 sanitizer bottles were consigned by Anuhya and co. Hyderabad to Nithya and co. Secunderabad costing Rs. 50 each. Expenses incurred by Anuhya and co. amounted to Rs. 5,000. On the way 5 sanitizer bottles were completely damaged due to bad h ndling and insurance company admitted the claim to the extent of Rs.2, 500. Nithya and co. took delivery of the remaining sanitizer bottles and incurred expenses Rs.1,200. Nithya and co. sold 495 sanitizer bottles for Rs. 40,000. It is entitled to a commission of 5% on sales. Prepare Consignment account, Nithya and co. a/c in the books of Anuhya and co. assuming that Nithya and co. remitted amount due by them.
Q27. Raja oil mills, kamareddy consigned 500 kgs of ghee to the Vijay dealers of Yellareddy. Cost of each Kg is 800. Raja oil mills paid Rs.5, 000 for various expenses. During the transit, 50kgs of ghee were accidentally destroyed. Vijay received remaining stock of ghee and reported that entire ghee is sold for Rs. 5,00,000 and his expenses are 12,000. He is entitled to a 5% commission on sales. Prepare necessary accounts in the books of Raja oil mills assuming that Vijay remitted amount due by them.
Q28. Pavan Kumar of Hyderabad consigns to Kiran Kumar of Nizamabad 50 cases of goods at a cost of Rs. 500 per case. Pavan Kumar incurred the expenses Rs. 500. Kiran Kumar paid Rs. 400. 4 cases were destroyed in transit. Kiran Kumar received remaining stock and sold entire stock for Rs. 30,000. He is entitled for a commission of 5% on sales and sent the bank draft for full settlement of account. Show necessary accounts in the books of Pavan Kumar.
Q29. On 1 January, 2020 Bharat coal company Ltd. Consigned to Vijay dealers, Vijayawada. 400 tons of coal cost of the coal being Rs. 180 per ton. The company had paid Rs.6, 000 towards freight and insurance. Vijay took delivery of the goods consigned on 10th January, 2020. On 31st March, 2020 the consignee reported that:(1). There was a shortage of 10 tons due to loading and unloading of the coal. (Treated as normal loss) (2). 380 tons were sold @ Rs.250 per ton. (3). He had paid Rs.3, 000 towards godown rent and selling expenses. Vijay dealers were entitled to a commission of Rs. 4,000. Show the necessary accounts in the books of Bharath Coal Company Ltd.