Co., : Rs. 22,390 rofit on Consignment: Rs. 11,890 On Ist April, 1996. Arun of Nellore consigned to Balu of Chennai 200 radio set at Rs. 1,300 each. Arun paid Rs. 500 for insurance and Rs. 1,000 for freight. On 13th April, Balu received the consignment and had to pay Rs. 300 as unloading charges and Rs. 150 as dock charges. On 14th October, 1996, Balu sent on account sales to Arun informing that till 30th Sept., 1996, 180 sets were sold at Rs. 1,400 each and 20 sets at Rs. 1,350 each. Balu sent the balance by a demand draft after deducting his commission at 10% on sales. Show the necessary journal entries in the books of Arun. [Manonmanian, B.Com., April 1998] [Ans : Loss on consignment: Rs. 10,850; Amount received from Balu : Rs, 2.50 6501 X' from Velur consigns 50 Bales ofC
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![hennai Nathan
Rs. 300 as freight. Nathan
Rs. 520 for cArriage and Rs. 130 for
ible for 4% Commission on Gross sales. Nathan
Show the necessary journal entries in the books of Arun.
at Rs. 1,350 each. Balu sent the balance by a demand draft after deducting his
account in the books of M/s. Madurai Somu & Co.
informing that till 30th Sept., 1996, 180 sets were sold at Rs. 1,400 each and 20 sets
Rs. 150 as dock charges. On 14th October, 1996, Balu sent on account sales to Arun
April, Balu received the consignment and had to pay Rs. 300 as unloading charges and
Rs. 1,300 each. Arun paid Rs. 500 for insurance and Rs. 1,000 for freight. On 13th
On Ist April, 1996. Arun of Nellore consigned to Balu of Chennai 200 radio set at
& Co. Sends cheque for the balance due. Show the journal entries and Nathan & Co.
(Bharathidasan, B.Com. April 20013;
Bharathiar, B.Com. Nov. 1999]
JAns: Amount due from Nathan & Co.: Rs. 22,390
Profit on Consignment: Rs. 11,890
commission at 10% on sales.
[Manonmanian, B.Com., April 1998]
[Ans : Loss on consignment: Rs. 10,850%;
Amount received from Balu: Rs. 2,50,650]
y from Velur consigns 50 Bales of Cotton at Rs. 400 per bale to his agent "Y' in
Madras, 'Y' is entitled for a commission of 5% on sales plus expenses.
Y' sells the consignment for Rs. 28,000 incurring freight charges Rs. 100 and Insurance
Ps. 500 and remils the sales proceeds by a cheque. Pass journal entries in the books of
both. the parties.
[Bharathlar, B.Com. April 1999; Novw. 1998]
[Ans : Profit on Consignment: Rs. 6,000;
Amount due from Y: Rs. 26,000]
2 Pass Journal entries in the books of 'A' the Consignor.
(1) Goods sent on consignment Rs. 15,000
(i) Expenses paid by 'A' :-
Freight- Rs. 100
Amount received as advance- 60% of goods sent.
Shot on Y17
Packing and Insurance--Rs. 500
2021.04.05 11:28
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