On 1st April 2016, Jaitra consigned some smart phones to Ronak at invoice price of Rs. 9,999 each. The invoice price was fixed after adding 33% 3 profit on invoice price. Jaitra incurred the following expenses at the time of dispatching the smart phones : Freight Rs. 25,000 Insurance Rs. 1,00,000 Ronak is entitled to get 11% commission on total sales and 5% del credere commission on credit sales. Ronak paid Rs. 18,000 for clearing charge and Rs. 30,000 for selling expenses. He sold 4/5 of consigned phones at 33% profit on invoice price at 10% 3 trade discount, of which 1/4 smart phones were sold on credit. It was found that 1/2 smart phones of the remaining were still in transit and remaining phones were destroyed. Insurance company admitted the claim at 10% less. Total sales made by Ronak in which Rs. 14,39,856 was cash sales. Ronak sent a bank draft for the balance amount. Write journal entries in the books of Jaitra.
On 1st April 2016, Jaitra consigned some smart phones to Ronak at invoice price of Rs. 9,999 each. The invoice price was fixed after adding 33% 3 profit on invoice price. Jaitra incurred the following expenses at the time of dispatching the smart phones : Freight Rs. 25,000 Insurance Rs. 1,00,000 Ronak is entitled to get 11% commission on total sales and 5% del credere commission on credit sales. Ronak paid Rs. 18,000 for clearing charge and Rs. 30,000 for selling expenses. He sold 4/5 of consigned phones at 33% profit on invoice price at 10% 3 trade discount, of which 1/4 smart phones were sold on credit. It was found that 1/2 smart phones of the remaining were still in transit and remaining phones were destroyed. Insurance company admitted the claim at 10% less. Total sales made by Ronak in which Rs. 14,39,856 was cash sales. Ronak sent a bank draft for the balance amount. Write journal entries in the books of Jaitra.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On 1st April 2016, Jaitra consigned some smart phones to Ronak at invoice price of Rs. 9,999 each. The invoice price was fixed after adding 33% 3 profit on invoice price. Jaitra incurred the following expenses at the time of dispatching the smart phones :
Freight
Rs. 25,000
Insurance
Rs. 1,00,000
Ronak is entitled to get 11% commission on total sales and 5% del credere commission on credit sales. Ronak paid Rs. 18,000 for clearing charge and Rs. 30,000 for selling expenses.
He sold 4/5 of consigned phones at 33% profit on invoice price at 10% 3 trade discount, of which 1/4 smart phones were sold on credit. It was found that 1/2 smart phones of the remaining were still in transit and remaining phones were destroyed. Insurance company admitted the claim at 10% less.
Total sales made by Ronak in which Rs. 14,39,856 was cash sales. Ronak sent a bank draft for the balance amount.
Write journal entries in the books of Jaitra.
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