Tuhi Nirankar

TUHI NIRANKAR
GYAN'S CLASSES
Address : A-7/2, Street Of State Bank of India, Pardhan Market, Sant Nirankari Colony, Delhi-110009.
Contact No. 9811272741, 9968892456, E-mail : prominent_gold@yahoo.com
Website : http://gyansclasses.jimdo.com

CONSIGNMENT
Q. 1 (Damaged Goods)
Gurdeep Singh of Amritsar consigned 100 bales of tobacco at Rs. 300 per bale to Satyam of Delhi. He spent Rs. 500
expenses. 15 bales were damaged in transit.
Gurdeep Singh closes his books for the year on 31 may. He recovered from insurance company a claim for Rs. 1,000
for the goods damaged on 31 May.
Satyam received the consignment on 10 April and sent his two month's acceptance for Rs. 20,000 to the consignor.
Following are the Account Sales:
(a) 70 bales sold at Rs. 350 per bale.
(b) Damaged bales sold at RS. 110 per bale.
© Consignee spent Rs. 1,700 for taking delivery of the goods and Rs. 300 for godown rent.
(d) Consignee is entitled to 10% commission on all sales except the sale of damaged goods.
(e) On 31 May, Satyam paid the remaining balance to the consignor.

Show the calculations of closing stock and loss on damaged goods and prepare the consignment account and also the
consignee account.
Q. 2 (Dal Credere Commission)
On 1 January, Sehajta of Amritsar sends 300 chests of rare medicines to Roshni of Nepal on consignment basis. The
cost of each chest was Rs. 1,000 only. Sehajta incurred the following expenses on the consignment Rs. 750 on
railway freight and Rs. 450 on insurance Roshni spent Rs. 1,200 on various accounts when the chests reached Nepal
200 chests were sold by Roshni uniformly at Rs. 2,000 per chest. Out of these, 10 chests were sold to a customer on
credit and this transaction ultimately proved bad.
Hyder sent an account sales on 30 June which revealed that he charged 5% as an ordinary commission and 10% as
del credere commission. The consignee sent a demand draft for Rs. 90,000. You are required to give in Veeresh'
books :
(i) Consignment to Hyderabad Account.
(ii) Hyder' personal account.
(iii)Goods sent on consignment account.

Q. 3 (Goods Sent At Loaded Price)

On 1 January, 2004, Gurdeep of Delhi consigned 100 cases (cost price Rs. 11,250) at a Proforma Invoice Price of
25% profit on sale to his Agent Mandeep of Amritsar. On the same date, Gurdeep paid for loading, unloading,
freight, etc. amounting to Rs. 900. On 12 January, Mandeep took deliver and paid Rs. 1,800 for octroi and other
duties. Mandeep also remitted an advance of Rs. 6,000 on receiving the consignment. On 31 January he sold 80 cases
for Rs. 15,750. Mandeep is entitled to 5% commission on Gross Sales and 10% on the sales price in excess of
invoice price. Show ledger accounts in the books of the consignor. Calculations to be made to the nearest rupee.

Q. 4 (At Loaded Price)

Gyan of Nepal sent 1,000 watches costing Rs. 144 each to Teju of Bhutan at an invoice price of Rs. 180 per watch on
consignment basis. Teju is entitled to a commission of 10% on the invoice price and 25% on any surplus price
realised over and above the invoice price.
Gyan spent Rs. 720 towards forwarding and insurance charges. Teju received the consignment and paid Rs. 1,764

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towards freight and Rs. 1,176 towards selling amount due to Gyan.
You are required to pass the journal entries in the books of Gyan and show Consignment account and Teju' account.
Q. 5 (Abnormal Loss-In-Transit)
1,000 cycles were consigned by Himmat to Deepak at Rs. 150 each. Himmat paid freight Rs. 10,000 and insurance
Rs. 1,500. During transit, 100 cycles were totally damaged by fire. Insurance company paid Rs. 14,000 for claim of
loss. Deepak took delivery of 900 cycles and paid Rs. 1,530 for octroi. 800 cycles were sold at Rs. 220 each.
Expenses of Deepak were Rs. 2,000. Deepak was entitled to a commission of 5%. Deepak settled the account by
bank draft. Prepare ledger accounts in the books of Himmat and Deepak.

Q. 6 (Abnormal Loss)
Sehajta consigned 1,000 radio sets costing Rs. 900 each to Deepika, her agent, on 1 January. Sehajta incurred the
following expenses on sending the consignment: Carriage —Rs. 6,500; Freight—Rs. 9,000 and insurance—Rs.
3,250. Deepika received the delivery of 950 radio sets. Account sales subsequently revealed that 750 sets were sold
for Rs. 9,00,000 and Deepika's expenses were Rs. 3,000 for carriage and Rs. 7,500 for customs duty. She is also
entitled to a commission @ 6% on sales. Sehajta could get only Rs. 35,000 from insurance company for the lost radio
sets. Prepare consignment account and Deepika's account in Sehajta's books.

Q. 7 (Loss-In-Transit)
Bipasha of Kolkata consigned 100 radio sets costing Rs. 500 each to Malika of Haryana. The invoice was made
proforma at Rs. 600 per set. Malika was entitled to a commission of 7.5% on sales plus 22.5% del credere
commission and 10% of any excess price realised over invoice price. Malika was to bear all expenses incurred after
the goods reached his godown.
While sending the goods, Bipasha paid Rs. 1,500 as forwarding expenses and insurance. In transit 10
radio sets were damaged and Bipasha paid Rs. 1,500 as forwarding expenses and insurance. In transit 10 radio sets
were damaged and Bipasha recovered Rs. 4,000 from Insurance Company. Malika took delivery of the remaining
radio sets paying Rs. 4,500 as freight, cartage etc. Malika sold 70 radio sets at RS. 800 each, 30 of them on credit.
Out of which the proceeds of 3 radio sets could not be recovered because of disappearance of the customers. He paid
Rs. 500 as storage and selling expenses. Malika sent a bank draft for the amount due to Bipasha.
Show Consignment Account, Malika's Account, Stock Destroyed Account and Goods Sent on
Consignment Account in the books of Bipasha.

Q. 8 (At loaded Price)

Abhinav of Agra sends 1,000 machines to Purab of Patna to be sold on consignment basis. The cost of each machine
is Rs. 400 but the invoice price is at the rate of Rs. 500. Abhinav spends Rs. 1,200 on packing and despatches to
Purab, who on receiving the consignment accepts Abhinav's bill for 40,000. Subsequently Purab informs Abhinav
that 800 machines have been sold @ Rs. 700. Expenses paid by Purab were : freight— Rs. 1,600; godown rent— Rs.
2,000; insurance — Rs. 1,200. Purab is entitled to a commission of 6 percent on sales and 1 ½% del credere
commission. One customer who purchased 40 machines on credit failed to pay due to insolvency. Prepare
consignment account and Purab's account in the books of Abhinav and Abhinav's account in the book of Purab.
[B. Com.]
Q. 9 (At loaded Pirces)
On 1 January, Neeraj of Nagpur consigned to Dheeraj of Delhi goods costing Rs. 12,000 at an invoice price 20%
above cost. He has spent Rs. 1,000 as goods consignor. The consignee is entitled to a commission of 4% on invoice
price and 0% on any excess price realised over invoice price. On 31st March, 2,000 an account Sales was received
from Dheeraj showing that ¾ of the goods were sold for Rs. 12,000. His actual expenses amounted to Rs. 600.
Dheeraj accepted a bill fr the balance due. Show consignment account and Dheeraj's account in the books of Neeraj
and Neeraj and Neeraj's Account in the books of Dheeraj.
[B. Com.]
Q. 10 (Bills Receivable Received As Part payment And Not As deposit)
A of Delhi sent 1,000 machine parts to B of Kolkata on consignment basis. The cost of each machine part was Rs.
100, but it was invoiced to B at cost plus 25%. The expenses of A were : Freight Rs. 12,000; Insurance Rs. 13,000.
During the transit 100 parts were destroyed and the insurance company paid Rs. 10,000 towards that claim. B sold

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800 parts at Rs. 150 each and paid for storage and insurance Rs. 3,000 and Rs. 2,000 respectively. B also accepted a
bill for Rs. 80,000 at 3 months drawn by A which A discounted immediately with his bank at 6% p.a. It was agreed
that B is to get 5% commission Give the ledger accounts in the books of the consignor.
[B. Com.]

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