All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
B Com Exam  >  B Com Questions  >  Sharma of patna consigned to gupta of muzaffa... Start Learning for Free
SaveJoin the Discussion on the App
Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta?
Clear all your B Com doubts with EduRev
Most Upvoted Answer
Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced a...
Solution:

Accounts to be Opened:

1. Consignment Account (Sharma)
2. Consignment Account (Gupta)
3. Sales Account
4. Commission Account
5. Packing Charges Account
6. Insurance Account
7. Carriage Account
8. Bank Account

Calculation of Cost Price:

As given, the selling price of one book is Rs 75, which is 25% above the cost price. Therefore, the cost price of one book can be calculated as follows:

Cost Price per book = Selling Price per book / (1 + Markup %)
Cost Price per book = 75 / (1 + 25/100)
Cost Price per book = Rs 60

Calculation of Invoice Value:

Invoice Value = Quantity * Selling Price per book
Invoice Value = 250 * 75
Invoice Value = Rs 18750

Preparation of Invoice:

Particulars Amount (Rs)
Invoice Value 18750
Add: Packing Charges 100
Add: Insurance 50
Add: Carriage 300
Total Cost 19200

Calculation of Profit/Loss on Consignment:

Particulars Amount (Rs)
Invoice Value 18750
Add: Packing Charges 100
Add: Insurance 50
Add: Carriage 300
Total Cost 19200
Less: Cost of Goods Sold (250 * 60) 15000
Gross Profit 4200
Less: Commission (5% of 18200) 910
Net Profit 3290

Preparation of Account:

Sharma's Books:

Consignment Account

Particulars Amount (Rs)
To Goods Sent 15000
To Packing Charges 100
To Insurance 50
To Carriage 300
To Gross Profit (Transferred to P&L) 3290
To Bank (Received from Gupta) 15000
Total 28540

Gupta's Books:

Consignment Account

Particulars Amount (Rs)
By Goods Received 15000
By Gross Profit (Transferred to P&L) 3290
By Commission 910
By Sales (255 * 75) 19125
By Packing Charges 100
By Insurance 50
By Carriage 300
Total 38575

Sales Account

Particulars Amount (Rs)
To Consignment Account 19125
To Expenses (530) 530
To Bank (Received from Customers) 18200
Total 37855

Commission Account

Particulars Amount (Rs)
To Consignment Account 910
To Bank (Paid to Gupta) 910
Total 1820

Packing Charges Account

Particulars Amount (Rs)
To Consignment Account 100
To Sales Account 100
Total 200

Insurance Account

Particulars Amount (Rs)
To Consignment Account 50
To Sales Account 50
Total 100

Carriage Account

Particulars Amount (Rs)
To Consignment Account 300
To Sales Account 300
Total 600

Bank Account

Particulars Amount (Rs)
To Consignment Account (Received from Gupta) 15000
By Consignment Account (Paid to Gupta) 910
By Sales Account (Received from Customers) 18200
Total 32290

Note: The above accounts are prepared assuming that the consignment is valued at cost price. If the consignment was
Community Answer
Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced a...
Give me ans
Explore Courses for B Com exam

Similar B Com Doubts

4. On January 1, 2018 the Consignment to Ceylon A/c in the books of Unique Clock Makers showed a debit balance of Rs. 3,750. This is represented by the invoice value of 50 clocks which is 25% above cost. On January 7, they sent another consignment of 2,500 clocks at the invoice price of Rs. 75 each which was 25% above cost. They paid Rs. 1,000 for packing, Rs. 500 for insurance and Rs. 3,000 for carriage and freight. Rama watch Co. the Consignee, received the clocks on January 21 and paid Rs. 3,000 for custom duty, clearing, etc. They also sent a bank draft for 50% of the invoice price of the goods received. On June 15, they returned 50 clocks which were found defective. By December 31, 2018 they sold the opening stock of 50 clocks at Rs. 85 each on credit and 2,400 clocks of the new Consignment at Rs. 90 each. Their expenses were: advertising Rs. 2,000, salaries Rs. 2,000, and service charges Rs. 250. The Consignee is entitled to a commission of 8% on sales. The Consignee could not recover Rs. 250 on account of credit sales. Show the necessary ledger accounts in the books of both the parties. (Answer: Profit Rs. 43,780; Value of closing stock Rs. 3,900; Amount due from Consignees Rs. 1,01,630)?

3. Modi Textiles, Delhi consigned to Vinod Enterprises, Calcutta 100 cotton bales. The invoice price of each bale was Rs. 1,500 which includes 20% profit on invoice price. The Consignor paid Rs. 2,500 for insurance and Rs. 4,000 for carriage and freight. The Consignee received cotton bales and sold 75 bales for cash and realised Rs. 1,12,500. He incurred Rs. 1,800 on godown rent and was allowed 10% conmission on sales. 5 cotton bales were spoiled in godôwn and they are to be valued at 50% depreciation. Show Consignment Account in the books of Modi Textiles. Note : These write Unive Hint: The damaged goods are also to be included in stock and they will be valued at 50% of the invoice price and the proportionate expenses. (Answers: Profit Rs. 1,412, Value of stock Rs. 35,212 (including Rs. 3,912 for damaged goods); Amount due from the Consignee Rs. 99,450)?

Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta?
Question Description
Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta? 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 Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta?.
Solutions for Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta? defined & explained in the simplest way possible. Besides giving the explanation of Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta?, a detailed solution for Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta? has been provided alongside types of Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta? theory, EduRev gives you an ample number of questions to practice Sharma of patna consigned to gupta of muzaffarpur 250 books invoiced at Rs 75 each , which was 25% above their cost price. Sharma paid packing charges Rs 100 insurance Rs 50 and carriage Rs 300 gupta sold 255 books for Rs 18200 , the expenses thereon being Rs 530. Commission on sales was fixed at 5% Gupta remitted Rs 15000 on account open necessary accounts in the books of Sharma and gupta? tests, examples and also practice B Com tests.
Explore Courses for B Com exam

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup