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Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma?
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Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March /...
Ledger Entries for Bicycle Consignment Sale
Ledger entries are recorded in the books of the seller and buyer in case of consignment sales. In this case, Sushma is the seller, and Smitha is the buyer. Let us understand the ledger entries for the given transactions:
1. Consignment of Bicycles on 1st March 2017
Sushma consigned 10 bicycles to Smitha on 1st March 2017. The cost of each bicycle is ₹ 1500, and the freight and insurance charges are ₹ 750 and ₹ 250, respectively. The total cost of the consignment is:
Cost of 10 bicycles = 10 x ₹ 1500 = ₹ 15,000
Freight charges = ₹ 750
Insurance charges = ₹ 250
Total cost = ₹ 16,000
The ledger entry in the books of Sushma is:
Date Particulars L.F. Debit Credit
1/3/2017 Smitha A/c Dr. ₹ 16,000
To Sales Consignment A/c ₹ 16,000
(Being consignment of 10 bicycles sent to Smitha)
2. Acceptance of Bill by Smitha on 15th March 2017
On 15th March 2017, Smitha accepted the bill drawn on her by Sushma for ₹ 10,000. Smitha also paid Gorden rent of ₹ 400, insurance charges of ₹ 250, and unloading charges of ₹ 100. The commission payable to Smitha and Gorden is 5% of the sale proceeds.
The ledger entries in the books of Smitha are:
Date Particulars L.F. Debit Credit
15/3/2017 Sushma A/c Dr. ₹ 10,000
To Bill Payable A/c ₹ 10,000
(Being acceptance of bill drawn by Sushma)
Date Particulars L.F. Debit Credit
15/3/2017 Commission A/c Dr. ₹ 820
To Smitha A/c ₹ 410
To Gorden A/c ₹ 410
(Being commission payable to Smitha and Gorden)
Date Particulars L.F. Debit Credit
15/3/2017 Gorden A/c Dr. ₹ 750
To Bank A/c ₹ 750
(Being payment made towards rent, insurance, and unloading charges)
3. Sale of 8 Bicycles by Smitha
Smitha sold 8 bicycles at ₹ 2050 each, and after deducting the commission and expenses, she sent a bank draft for the amount due. The commission payable to Smitha and Gorden is 5% of the sale proceeds.
The ledger entries in the books of Sushma are:
Date Particulars L.F. Debit Credit
31/3/2017 Bank A/c Dr. ₹ 15,540
To Smitha A/c ₹ 16,400
To Commission A/c ₹ 820
(Being receipt of bank draft from Smitha after deducting commission and expenses)
Date Particulars L.F. Debit Credit
31/3/2017 Sales Consignment A/c Dr. ₹ 16,400
To Smitha A/c ₹ 16,400
(Being sale proceeds of 8 bicycles)
Conclusion
In conclusion
Ledger entries are recorded in the books of the seller and buyer in case of consignment sales. In this case, Sushma is the seller, and Smitha is the buyer. Let us understand the ledger entries for the given transactions:
1. Consignment of Bicycles on 1st March 2017
Sushma consigned 10 bicycles to Smitha on 1st March 2017. The cost of each bicycle is ₹ 1500, and the freight and insurance charges are ₹ 750 and ₹ 250, respectively. The total cost of the consignment is:
Cost of 10 bicycles = 10 x ₹ 1500 = ₹ 15,000
Freight charges = ₹ 750
Insurance charges = ₹ 250
Total cost = ₹ 16,000
The ledger entry in the books of Sushma is:
Date Particulars L.F. Debit Credit
1/3/2017 Smitha A/c Dr. ₹ 16,000
To Sales Consignment A/c ₹ 16,000
(Being consignment of 10 bicycles sent to Smitha)
2. Acceptance of Bill by Smitha on 15th March 2017
On 15th March 2017, Smitha accepted the bill drawn on her by Sushma for ₹ 10,000. Smitha also paid Gorden rent of ₹ 400, insurance charges of ₹ 250, and unloading charges of ₹ 100. The commission payable to Smitha and Gorden is 5% of the sale proceeds.
The ledger entries in the books of Smitha are:
Date Particulars L.F. Debit Credit
15/3/2017 Sushma A/c Dr. ₹ 10,000
To Bill Payable A/c ₹ 10,000
(Being acceptance of bill drawn by Sushma)
Date Particulars L.F. Debit Credit
15/3/2017 Commission A/c Dr. ₹ 820
To Smitha A/c ₹ 410
To Gorden A/c ₹ 410
(Being commission payable to Smitha and Gorden)
Date Particulars L.F. Debit Credit
15/3/2017 Gorden A/c Dr. ₹ 750
To Bank A/c ₹ 750
(Being payment made towards rent, insurance, and unloading charges)
3. Sale of 8 Bicycles by Smitha
Smitha sold 8 bicycles at ₹ 2050 each, and after deducting the commission and expenses, she sent a bank draft for the amount due. The commission payable to Smitha and Gorden is 5% of the sale proceeds.
The ledger entries in the books of Sushma are:
Date Particulars L.F. Debit Credit
31/3/2017 Bank A/c Dr. ₹ 15,540
To Smitha A/c ₹ 16,400
To Commission A/c ₹ 820
(Being receipt of bank draft from Smitha after deducting commission and expenses)
Date Particulars L.F. Debit Credit
31/3/2017 Sales Consignment A/c Dr. ₹ 16,400
To Smitha A/c ₹ 16,400
(Being sale proceeds of 8 bicycles)
Conclusion
In conclusion
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Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March /...
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Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma?
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Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma?.
Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma?.
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Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma?, a detailed solution for Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma? has been provided alongside types of Sushma consign 10 bicycles costing ₹ 1500 each to Smitha on 1/ March / 2017 by paying ₹ 750 as fright and ₹ 250 as insurance Smitha accepted a bill drawn on her buy susma for ₹ 10,000 on 15th March ,2017 and paid Gorden rent ₹ 400 and insurance 250 unloading charge 100 .They are entitled a commission of 5% Smitha sold 8 bicycle at 2050 each and send a bank drapt for the amount dew after didecting and commission and expenses prepare nessary ledger in the book of sushma? theory, EduRev gives you an
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