Introduction:
In this question, Raju of Chennai consigned goods to his agent Raja of Kolkata. Raju incurred certain expenses on consignment, while Raja was allowed a commission, establishment charges, and delcredere commission. Three-fourth of the goods were sold at a price to yield 20% profit on cost. We need to prepare the ledger accounts in the books of the consignor and consignee.

Ledger accounts in the books of the Consignor:
The ledger accounts in the books of the Consignor are as follows:

Consignor Account:
Particulars Amount (Rs.) Particulars Amount (Rs.)
To Raja Account 62,400 By Goods sent 80,000
To Expenses 3,000 By Delcredere 1,800
Commission
By Balance 12,400
carried down

Raja Account:
Particulars Amount (Rs.) Particulars Amount (Rs.)
To Balance b/d 0 By Consignment 80,000
To Landing Charges 1,000 Sales
To Establishments 500 60,000 × 3/4 × 20% 9,000
Charges Commission
To Commission on 3,000 By Delcredere 1,800
Sales Commission
4,500 By Balance c/d 70,000
carried down

Ledger accounts in the books of the Consignee:
The ledger accounts in the books of the Consignee are as follows:

Raju Account:
Particulars Amount (Rs.) Particulars Amount (Rs.)
To Balance b/d 0 By Goods received 80,000
To Expenses 1,000 By Commission 5,760
on Sales
1,000 By Delcredere 2,400
Commission
2,000 By Balance c/d 72,840
carried down

Sales Account:
Particulars Amount (Rs.) Particulars Amount (Rs.)
To Raja Account 60,000 By Balance b/d 0
To Raja Account 9,000 By Sales 60,000
To Commission on 5,760 By Balance c/d 13,740
Sales
75,760 75,760

Explanation:
- The Consignor account records the goods sent and expenses incurred on consignment. The account is debited with expenses and credited with the value of goods sent, delcredere commission, and balance carried down.
- The Raja account records the consignment received and various charges and commissions allowed to the consignee. The account is debited with landing charges, establishment charges, commission on sales, and balance carried down. It is credited with the value of goods received, delcredere commission, and commission on sales.
- The Raju account in the books of the Consignee records the goods received and expenses incurred on consignment. It is debited with expenses and credited with the value of goods received