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200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.?
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200 boxes of tea are consigned to pune valuing rs1000. Out of these 10...
Consignment Account
The consignment account is a nominal account that is used to record all the transactions related to consignment sales. It is prepared in the books of the consignor, who is the owner of the goods. The consignment account helps in determining the profit or loss on consignment sales.
Opening Balance
- The consignment of 200 boxes of tea is valued at Rs. 1000.
- This forms the opening balance of the consignment account.
Purchase Expenses
- Expenses of consignment prior to loss are Rs. 200.
- These expenses are debited to the consignment account as they are incurred by the consignor.
Fire Loss
- 10 boxes of tea are completely destroyed by fire.
- The loss due to fire is covered by insurance, and a claim is made against the insurance company.
- The insurance claim amount is not recorded in the consignment account as it is a reimbursement of loss.
Post-Loss Expenses
- Expenses of consignment after the loss are Rs. 390.
- These expenses are debited to the consignment account as they are incurred by the consignor.
Commission and Selling Expenses
- The commission and selling expenses are Rs. 600.
- These expenses are debited to the consignment account as they are incurred by the consignor.
Sales Proceeds
- Sales of 110 boxes of tea are made for Rs. 1400.
- The sales proceeds are credited to the consignment account as it represents the revenue earned from the consignment sales.
Closing Balance
- The closing balance of the consignment account is calculated by adding the opening balance, purchase expenses, post-loss expenses, and deducting the sales proceeds, commission, and selling expenses.
Calculation of Closing Balance
Opening Balance: Rs. 1000
Purchase Expenses: Rs. 200
Post-Loss Expenses: Rs. 390
Sales Proceeds: Rs. 1400
Commission and Selling Expenses: Rs. 600
Closing Balance = Opening Balance + Purchase Expenses + Post-Loss Expenses - Sales Proceeds - Commission and Selling Expenses
Closing Balance = 1000 + 200 + 390 - 1400 - 600
Closing Balance = Rs. -10
Interpretation
The closing balance of Rs. -10 indicates a loss on consignment sales. This means that the consignor has incurred a loss of Rs. 10 on the consignment. The consignor may need to take appropriate measures to improve the sales and reduce expenses in order to achieve profitability in future consignments.
The consignment account is a nominal account that is used to record all the transactions related to consignment sales. It is prepared in the books of the consignor, who is the owner of the goods. The consignment account helps in determining the profit or loss on consignment sales.
Opening Balance
- The consignment of 200 boxes of tea is valued at Rs. 1000.
- This forms the opening balance of the consignment account.
Purchase Expenses
- Expenses of consignment prior to loss are Rs. 200.
- These expenses are debited to the consignment account as they are incurred by the consignor.
Fire Loss
- 10 boxes of tea are completely destroyed by fire.
- The loss due to fire is covered by insurance, and a claim is made against the insurance company.
- The insurance claim amount is not recorded in the consignment account as it is a reimbursement of loss.
Post-Loss Expenses
- Expenses of consignment after the loss are Rs. 390.
- These expenses are debited to the consignment account as they are incurred by the consignor.
Commission and Selling Expenses
- The commission and selling expenses are Rs. 600.
- These expenses are debited to the consignment account as they are incurred by the consignor.
Sales Proceeds
- Sales of 110 boxes of tea are made for Rs. 1400.
- The sales proceeds are credited to the consignment account as it represents the revenue earned from the consignment sales.
Closing Balance
- The closing balance of the consignment account is calculated by adding the opening balance, purchase expenses, post-loss expenses, and deducting the sales proceeds, commission, and selling expenses.
Calculation of Closing Balance
Opening Balance: Rs. 1000
Purchase Expenses: Rs. 200
Post-Loss Expenses: Rs. 390
Sales Proceeds: Rs. 1400
Commission and Selling Expenses: Rs. 600
Closing Balance = Opening Balance + Purchase Expenses + Post-Loss Expenses - Sales Proceeds - Commission and Selling Expenses
Closing Balance = 1000 + 200 + 390 - 1400 - 600
Closing Balance = Rs. -10
Interpretation
The closing balance of Rs. -10 indicates a loss on consignment sales. This means that the consignor has incurred a loss of Rs. 10 on the consignment. The consignor may need to take appropriate measures to improve the sales and reduce expenses in order to achieve profitability in future consignments.
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200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.?
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200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.? 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 200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.?.
200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.? 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 200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.?.
Solutions for 200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.? in English & in Hindi are available as part of our courses for B Com.
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Here you can find the meaning of 200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.? defined & explained in the simplest way possible. Besides giving the explanation of
200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.?, a detailed solution for 200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.? has been provided alongside types of 200 boxes of tea are consigned to pune valuing rs1000. Out of these 10 boxes are completely destroyed by fire and a claim was made against the Insurance company for this loss expenses of consignment prior to loss are rs 200 expenses of consignment after loss are rs 390 the commission and selling expenses are rs 600 an sales was received for 110 boxes for rs 1400 . Show the consignment account in the books of the consignment.? theory, EduRev gives you an
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