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A consigned to be 5000 kgs of t costing ₹40 per kg. A paid 3000 times freight and 2000 as insurance. after receiving the goods ,B spent ₹3950 on cartage 500 rupee on selling expenses and ₹500 on godown rent. B was allowed the commission of 5% on sales ,3000kgs of the tea were sold at 64 per kg 25 kgs of tea were lost due to breakage of a chest which were consider to be normal loss 500kg of tea were lost by fire in the godown of the consignee. the insurance company admitted the claim @₹15000 . prepare necessary ledger account in the books of A and A's account in the books of B.?
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A consigned to be 5000 kgs of t costing ₹40 per kg. A paid 3000 times ...
Consignment Overview
- A consigned 5000 kg of tea to B at ₹40 per kg.
- B incurred costs:
- Freight: ₹3000
- Insurance: ₹2000
- Cartage: ₹3950
- Selling Expenses: ₹500
- Godown Rent: ₹500
- Commission to B: 5% on sales.
Losses and Sales
- Total 5000 kg tea:
- Sold: 3000 kg at ₹64 per kg.
- Normal Loss: 25 kg (due to breakage).
- Abnormal Loss: 500 kg (due to fire).
- Insurance Claim: ₹15000 admitted by the company.
Ledger Accounts in A's Books
1. Consignment Account
- Opening Balance: ₹200000 (5000 kg * ₹40)
- Add: Freight ₹3000
- Add: Insurance ₹2000
- Less: Normal Loss (25 kg * ₹40) = ₹1000
- Less: Abnormal Loss (500 kg * ₹40) = ₹20000
- Total Sales: 3000 kg * ₹64 = ₹192000
- Add: Insurance Claim: ₹15000
- Total Consignment Account: ₹200000 + ₹3000 + ₹2000 - ₹1000 - ₹20000 + ₹192000 + ₹15000 = ₹384000
2. A's Account in B's Books
- Debit: A's Account with the total of ₹384000.
- Credit: B's Commission (5% of ₹192000) = ₹9600.
- Net Amount Payable to A = ₹384000 - ₹9600 = ₹374400.
Conclusion
- The ledger accounts reflect the accurate financial position of the consignment, covering costs, losses, and profits.
- B is liable to pay A ₹374400 after deducting commission.
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A consigned to be 5000 kgs of t costing ₹40 per kg. A paid 3000 times freight and 2000 as insurance. after receiving the goods ,B spent ₹3950 on cartage 500 rupee on selling expenses and ₹500 on godown rent. B was allowed the commission of 5% on sales ,3000kgs of the tea were sold at 64 per kg 25 kgs of tea were lost due to breakage of a chest which were consider to be normal loss 500kg of tea were lost by fire in the godown of the consignee. the insurance company admitted the claim @₹15000 . prepare necessary ledger account in the books of A and A's account in the books of B.?
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A consigned to be 5000 kgs of t costing ₹40 per kg. A paid 3000 times freight and 2000 as insurance. after receiving the goods ,B spent ₹3950 on cartage 500 rupee on selling expenses and ₹500 on godown rent. B was allowed the commission of 5% on sales ,3000kgs of the tea were sold at 64 per kg 25 kgs of tea were lost due to breakage of a chest which were consider to be normal loss 500kg of tea were lost by fire in the godown of the consignee. the insurance company admitted the claim @₹15000 . prepare necessary ledger account in the books of A and A's account in the books of B.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A consigned to be 5000 kgs of t costing ₹40 per kg. A paid 3000 times freight and 2000 as insurance. after receiving the goods ,B spent ₹3950 on cartage 500 rupee on selling expenses and ₹500 on godown rent. B was allowed the commission of 5% on sales ,3000kgs of the tea were sold at 64 per kg 25 kgs of tea were lost due to breakage of a chest which were consider to be normal loss 500kg of tea were lost by fire in the godown of the consignee. the insurance company admitted the claim @₹15000 . prepare necessary ledger account in the books of A and A's account in the books of B.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A consigned to be 5000 kgs of t costing ₹40 per kg. A paid 3000 times freight and 2000 as insurance. after receiving the goods ,B spent ₹3950 on cartage 500 rupee on selling expenses and ₹500 on godown rent. B was allowed the commission of 5% on sales ,3000kgs of the tea were sold at 64 per kg 25 kgs of tea were lost due to breakage of a chest which were consider to be normal loss 500kg of tea were lost by fire in the godown of the consignee. the insurance company admitted the claim @₹15000 . prepare necessary ledger account in the books of A and A's account in the books of B.?.
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