Mr. Jasim consigned 1,000 cans of oil costing Rs. 900 each to Mr. Irfan for sale on commission basis @ 15% on gross sales. He paid packing and freight charges of Rs. 20 per can. Mr. Irfan sent an account sale to Mr. Jasim which showed that 950 cans @ Rs. 1000/can were sold and incurred the following expenses: Cartage Rs. 6,000, Warehouse Rent Rs. 2,500 and selling expenses Rs. 4,000. He enclosed a bank draft for the balance due to consignor also. You are required to prepare the consignment A/c and Consignee's A/c in the books of Consignor.
Mr. Jasim consigned 1,000 cans of oil costing Rs. 900 each to Mr. Irfan for sale on commission basis @ 15% on gross sales. He paid packing and freight charges of Rs. 20 per can. Mr. Irfan sent an account sale to Mr. Jasim which showed that 950 cans @ Rs. 1000/can were sold and incurred the following expenses: Cartage Rs. 6,000, Warehouse Rent Rs. 2,500 and selling expenses Rs. 4,000. He enclosed a bank draft for the balance due to consignor also. You are required to prepare the consignment A/c and Consignee's A/c in the books of Consignor.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Jasim consigned 1,000 cans of oil costing Rs. 900 each to Mr. Irfan for sale on commission basis @ 15% on gross sales. He paid packing and freight charges of Rs. 20 per can. Mr. Irfan sent an account sale to Mr. Jasim which showed that 950 cans @ Rs. 1000/can were sold and incurred the following expenses: Cartage Rs. 6,000, Warehouse Rent Rs. 2,500 and selling expenses Rs. 4,000. He enclosed a bank draft for the balance due to consignor also. You are required to prepare the consignment A/c and Consignee's A/c in the books of Consignor.
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