On 1/1/2017, Amar Mills of Calcutta consigned 5,000 Kg of oil to Vijay Stores of Madras. Each Kg of oil costs $ 8. Amar Mills paid $ 50 as carriage, $250 as freight and $200 as insurance. During transit, 500 Kg were accidentally destroyed for which the nsurance company paid directly to consignor $2,500 in full settlement of the claim. On 1/4/2017, Vijay Stores of Madras reported that 3,500 Kg of oil were sold @ $9.50 per Kg. and expenses being: Godown rent $ 500 and salesman's salary $750. Vijay Stores is entitled to a 5% commission on sales. Vijay Stores also reported a loss of 20 Kg due to leakage. Show (i) Consignment to Madras Account; (ii) Vijay Stores Account;
On 1/1/2017, Amar Mills of Calcutta consigned 5,000 Kg of oil to Vijay Stores of Madras. Each Kg of oil costs $ 8. Amar Mills paid $ 50 as carriage, $250 as freight and $200 as insurance. During transit, 500 Kg were accidentally destroyed for which the nsurance company paid directly to consignor $2,500 in full settlement of the claim. On 1/4/2017, Vijay Stores of Madras reported that 3,500 Kg of oil were sold @ $9.50 per Kg. and expenses being: Godown rent $ 500 and salesman's salary $750. Vijay Stores is entitled to a 5% commission on sales. Vijay Stores also reported a loss of 20 Kg due to leakage. Show (i) Consignment to Madras Account; (ii) Vijay Stores Account;
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On 1/1/2017, Amar Mills of Calcutta consigned 5,000 Kg of oil to Vijay Stores of
Madras. Each Kg of oil costs $ 8. Amar Mills paid $ 50 as carriage, $250 as freight and
$200 as insurance. During transit, 500 Kg were accidentally destroyed for which the
Insurance company paid directly to consignor $2,500 in full settlement of the claim. On
1/4/2017, Vijay Stores of Madras reported that 3,500 Kg of oil were sold @ $9.50 per
Kg. and expenses being:
Godown rent $ 500 and salesman's salary $750. Vijay Stores is entitled to a 5%
commission on sales. Vijay Stores also reported a loss of 20 Kg due to leakage.
Show (i) Consignment to Madras Account;
(ii) Vijay Stores Account;
(iii) Consignment Stock Account in the books of the consignor.
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