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Mr. A consigned 200 cycles @ 500 each and paid * 3,000 on freight. During the transit 20 cycles were lost by theft. Mr. B received the remaining stock and paid ₹ 3,600 on its clearing. He sold 150 cycles @ 800 per cycle. He was entitled for 10% commission on sales. He paid * 5,000 as miscellaneous expenses. Prepare Consignment Account in books of Mr. A.?
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Mr. A consigned 200 cycles @ 500 each and paid * 3,000 on freight. Dur...
Consignment Account in books of Mr. A


Particulars


  • Consigned 200 cycles @ 500 each

  • Freight paid: 3,000

  • 20 cycles lost by theft



Calculation of Cost of Goods Sold (COGS)


  • Total Cost of consigned cycles: 200 × 500 = 1,00,000

  • Freight paid: 3,000

  • Value of lost cycles: 20 × 500 = 10,000

  • COGS: 1,00,000 + 3,000 - 10,000 = 93,000



Calculation of Commission


  • Sales: 150 × 800 = 1,20,000

  • Commission: 1,20,000 × 10% = 12,000



Preparation of Consignment Account










































Particulars Amount (₹)
To Cycles Account (200 × 500) 1,00,000
To Freight Account 3,000
To Theft Account (20 × 500) 10,000
To Profit & Loss Account (COGS) 93,000
By B's Account (150 × 800) 1,20,000
By Commission Account 12,000
By Miscellaneous Expenses Account 5,000
By Balance c/d 2,000
Total 2,32,000


Explanation


  • The consignment account is prepared to record the transactions related to the consignment of goods.

  • The cost of the consigned goods along with the freight paid is debited to the consignment account.

  • The value of the lost goods is debited separately to the theft account.

  • The COGS is calculated and debited to the consignment
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Mr. A consigned 200 cycles @ 500 each and paid * 3,000 on freight. During the transit 20 cycles were lost by theft. Mr. B received the remaining stock and paid ₹ 3,600 on its clearing. He sold 150 cycles @ 800 per cycle. He was entitled for 10% commission on sales. He paid * 5,000 as miscellaneous expenses. Prepare Consignment Account in books of Mr. A.?
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Mr. A consigned 200 cycles @ 500 each and paid * 3,000 on freight. During the transit 20 cycles were lost by theft. Mr. B received the remaining stock and paid ₹ 3,600 on its clearing. He sold 150 cycles @ 800 per cycle. He was entitled for 10% commission on sales. He paid * 5,000 as miscellaneous expenses. Prepare Consignment Account in books of Mr. A.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mr. A consigned 200 cycles @ 500 each and paid * 3,000 on freight. During the transit 20 cycles were lost by theft. Mr. B received the remaining stock and paid ₹ 3,600 on its clearing. He sold 150 cycles @ 800 per cycle. He was entitled for 10% commission on sales. He paid * 5,000 as miscellaneous expenses. Prepare Consignment Account in books of Mr. A.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. A consigned 200 cycles @ 500 each and paid * 3,000 on freight. During the transit 20 cycles were lost by theft. Mr. B received the remaining stock and paid ₹ 3,600 on its clearing. He sold 150 cycles @ 800 per cycle. He was entitled for 10% commission on sales. He paid * 5,000 as miscellaneous expenses. Prepare Consignment Account in books of Mr. A.?.
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