Consignment Accounts PDF

## CONSIGNMENT ACCOUNTS 1. Goods Consigned 500 Kg @ ₹20 per Kg. Freight and Carriage Paid by the Consignor ₹4000. Consignee Sold 300 Kg @ ₹35 per Kg and incurred ₹1000 as unloading expenses, ₹2000 as godown rent and ₹1000 as Selling. Normal Loss due to Leakage is 50 Kg in transit. Calculate the val...

## CONSIGNMENT ACCOUNTS 1. Goods Consigned 500 Kg @ ₹20 per Kg. Freight and Carriage Paid by the Consignor ₹4000. Consignee Sold 300 Kg @ ₹35 per Kg and incurred ₹1000 as unloading expenses, ₹2000 as godown rent and ₹1000 as Selling. Normal Loss due to Leakage is 50 Kg in transit. Calculate the value of closing stock. ### Calculation of closing stock | Goods sent on Consignment @ | Qty | Amount | |---|---|---| | ₹ 20 Per Kg | 500 | 10,000 | | Add: Non-Recurring Exp of consignee | - | - | | Freight & Carriage | 500 | 4000 | | Cost of goods in transit | - | 14000 | | Less: Normal Loss in transit | 50 | - | | Cost of goods received by consignee | 450 | 14000 | | Add: Non-Recurring Exp(consignee) | - | - | | Unloading Exp | - | 1000 | | Goods available for sale | 450 | 15000 | | Less: Goods Sold (Sale) | 300 | - | | - | 150 | 05,000 | | Value of Closing Stock | - | | | 15000 x 150 = 25000 | - | - | | 450 | - | - | ## CONSIGNMENT ACCOUNTS 2. Mr Pankaj of Bangalore consigned 1000 Kgs goods costing ₹10 per Kg to Mr Ranga of Hyderabad. on consignment basis. Pankaj Paid Freight ₹500/- and insurance ₹300/- 200 Kgs were destroyed in transit due to an accident. claim admitted by the insurance Company was for ₹1500/- The Consignee Sold 700 Kgs @ ₹20 per Kg and incurred the following Expenses. unloading ₹200, Godown rent ₹500 and Selling Expenses ₹300/- Calculate the value of unsold stock. ### Calculation of unsold stock | Goods Sent on Consignment | Qty | Amount | |---|---|---| | @ ₹ 10 per kg | 1000 | 10,000 | | (+) Non-Recurring exp (Consignor) | - | - | | Freight 500 + insurance 300 | - | 800 | | Cost of goods in transit | 1000 | 10,800 | | (-) Abnormal Loss | 200 | 2160 | | 10800 x 200 = 2160 | - | - | | 1000 Goods received | 800 | 8640 | | (+) Non reccurring Exp (Consignde) | - | - | | Unloadeng Exp | - | 200 | | Goods available for sale | 800 | 8840 | | (-) Sales | 700 | - | | valuey closing Stock | 100 | 1105 | | 8840 x 100 | - | - | | 800 | - | - | ## CONSIGNMENT ACCOUNTS 3. Mr Surendar Consigned 20,000 units @ ₹10 p.le to Dharani and incurred delivery Exp of ₹1000. 1000 units were destroyed in transet due to theft. 13000 units were sold, 2000 units normally destroyed in the godown. Dharani incurred non recurring expensd of ₹900. ### Calculate the Value of unsold stock | Qty | Amt | |---|---| | Goods Sent @ ₹ 10/- | 20,000 | 200,000 | | (+) N.R. EXP of conseguer | - | 7000 | | Cost of goods in transit | 20,000 | 2,07,000 | | (-) Abnormal Loss | 2000 | 10,350 | | value of Abnormal loss | 207000 x 1000 / 20000 | - | | - | 19000 | 1,96,650 | | Cost of goods recevied | - | - | | (+) Non-recurring expeubel | - | 900 | | Paid by consignee | - | - | | (-) Normal loss ingodown | 19000 | 197550 | | (-) Sales | 13000 | - | | Goods available for Sale | 17000 | 1,97,550 | | Closing Stock | 4000 | 46482 | | 197550 x 4000 = 46,482 | - | - | | 17000 | - | - | ## CONSIGNMENT ACCOUNTS 4. Closing stock from the following information, a) Goods sent on consignment - 400 units @100/pu b) Expenses incurred by the Consignor - ₹2000/- c) Goods lost in transit - 20 units d) Expenses incurred by the Consegnee-Taxes ₹1420 and selling Exp ₹1000/- e) Good sold by the consignee - 340 units 5) Goods damaged @ consignee's place - 2% of the total goods Consigued (Which is permissible). ### Qty / Amount | Goods sent on consegut | 400 | 40,000 | | @ ₹. 100 pu | - | - | | (+) Exp incurred by Consignor | - | 2000 | | Goods in transit | 400 | 42000 | | (-) Abnormalless in transit | 20 | 2100 | | Abnormal Lost = 42000 x 20 / 400 | - | 39900 | | (+) Exppaid by Consignee | - | 1420 | | (-) Normal loss in godowan | 380 | 41320 | | 2% of 400 = 8 units | - | - | | Goods available -> | 372 | 41320 | | (-) Sales | 340 | - | | (41320×32) Value of closing stock | 32 | 3554 | | 372 | - | - | ## CONSIGNMENT ACCOUNTS 5. Mr Nandish of Mysore consigned 500 Kgs of oil @ ₹30 per Kg to Mr Santhosh. He paid ₹4000 as Carnage and freegat charges. Mr Santhosh also paed ₹1000 towards unloading charges, ₹2000 as godown rent & ₹ 1500 as Selling Exp. Normal loss due to leakage is 40 Kgs gol in transit. sales 320 Kgs @ ₹ 55 per kg and 19 kgs @ ₹60 per kg - Calculate valueey unsold stock ### Goods sent on Consignment@ | Qty | Amt | |---|---| | ₹ 30 per kg | 500 | 15000 | | (+) Exp paid by Consiguer | - | 4000 | | Cost of goods in transit | 500 | 19000 | | (-) Normal loss in transit | 40 | - | | Cost of goods received by (S | 460 | 19000 | | (+) Exp paid by Santhosh | - | 1000 | | Goods available for Sale | 460 | 20000 | | (-) Sales (320 + 19) | 339 | - | | valece of closing stock | 121 | 5261 | | 20000 x 121 = 5261 | - | - | | 460 | - | - | ## CONSIGNMENT ACCOUNTS 6. X consigned 100 packets of Cosmetics, each costing ₹ 300 to his agent at Chennai. He paid ₹ 400 towards breight, 15 packets were destroyed on the - way. The consignee took delivery of the remaining packets and spent ₹ 700 as godown rent, ₹ 850 as clearing charges and ₹ 300 as Carriage out wards. you are required to calculate the abnormal loss & the value of closing stock if the sales are 80 packets ### Qty Amount | Goods sent on Consignment @ ₹ 300 | 100 | 30,000 | | (+) Exp Paid by Consignee Freight | - | 400 | | Cost of goods in transet | 100 | 30400 | | (-) Abnormal Loss (15 Packets) | 15 | 4560 | | (30400 ×15) Costy Goods | - | 25840 | | (+) Expenses paid by Consignee | - | 850 | | Cost of goods available for sale | 85 | 26,690 | | (-) Sales | 80 | - | | Closeng stock | 5 | 1570 | | Value of Abnormal Loss = ₹4560 | - | - | | M-C.S = ₹ 1570 | - | - | ## CONSIGNMENT ACCOUNTS 7. 100 cycles costing ₹ 750 each were consigued by Jagan to hil agent Kumar incurring ₹ 1000 as expenses on the way 5 cycles were damaged and insurance claim of ₹ 3000 was accepted, Kumar incurred direct Expenses ₹I 500 and indirect expenses of ₹400, Kumar sold 80 Cycles @ ₹ 1000 per cycle. Calculate abnormal los & CS @ ### Calculation of closing stock | Qty | Amst | |---|---| | Goods sent on Consignment @ ₹ 750 | 100 | 75000 | | (+) Expenses incurred by Jagan | - | 1000 | | Cost of goods in transet | 100 | 76000 | | (-) Abnormal Loss in transet | 5 | 3800 | | 76000 x 5 / 100 | - | - | | (+) Exp paid by Kumar - Direct Exp | - | 500 | | Cost of goods available for sale | 95 | 72700 | | (-) Sales | 80 | - | | (12700 X15) Valve of closing stock | 15 | 11,479 | | 95 | - | - | ## CONSIGNMENT ACCOUNTS 8. on June 10th 2020 ABC & Co. Bangalore consigued 500 cases of goods costing ₹ 150 Cach Swathe & Co. Chennai, on the same date, the consignor paid ₹ 2500 as breight. 1000 as loading charges & ₹ 1200 for insurance. on July 1, 2020 the consiguce paid ₹ 1800 for clearing charges, ₹ 1750 for warehousing charges and ₹ 900/-bor packeng & selling expenses. He also remitted a bank draft for ₹ 15000 as an advance against the consignment. on July 5, 2020 they sold 275 cases @ ₹ 200. Swatte & co entitled to 5%. Commission on the gross Sale Proceeds, 50 cases were lost in transit. ## Prepare the necessary ledger accounts in the books of Consignor. ### Goods sent on Consignment@ | Qty | Amt | |---|---| | 150 | 500 | 75000 | | Add: Non-Recurring Esel of consignor | - | - | | Freegut | - | 2500 | | Loading | - | 1000 | | Insurance | - | 1200 | | Cost of goods in transet | 500 | 79700 | | Less: Abnormal loss intranrel | 50 | 7940 | | (79700 ×50) = 7970 | - | - | | Add: Non-RecurringExp(Consegnee) | - | 1800 | | Goods available for Sale | 450 | 73,530 | | Less: | - | - | | Sales | 275 | - | | Closing Stock | 175 | 28595 | ## CONSIGNMENT ACCOUNT | Date | Amount | Date | Amount | |---|---|---|---| | 2020 To Goods Sent on can | 75000 | 2020 | - | | To Bank Alc (Exp) | 4700 | | By Swathe & Co | 55000 | | - | - | | (275×200) | - | | 20 To Swatheco (Expenses paid by Consignee) | 4450 | 102020| By Abnormal Loss | 7970 | | To swathe & Co | 2750 | | By Consignmont | 28595 | | (55000 x 500) | - | | Stock AlC | - | | To Probetalas Ale | | | 4665 | | | | | 94565 | - | 91565 | - | ## CONSIGNMENT ACCOUNT | Date | RS | Date | RS | |---|---|---|---| | 1 | - | 10/2020 | - | | 2020 To Trading Ale | 75000 | By Consigmentale | 75000 | | (Balancing Fegatie | - | - | - | | | 75000 | - | 75000 | ## SWATHE & CO. ALC (CONSIGNEE) | Date | RS | Date | RS | |---|---|---|---| | 10|2020 To Consignment Ale | 55000| 12/2020 | - | | (Sale Proceeds) | - | | By Bank Ale | 15000 | | - | - | | (Advance) | - | | - | - | 10|2020 | By Consigment Ale | 4450 | | - | - | 14 | By Consigment Ale | 2750 | | - | - | | (Exp) | -| | - | - | | (Commission) | - | | - | - | | Balance C/d | 32,800 | | - | 55000 | - | | ## CONSIGNMENT ACCOUNTS 9. G Ltd Conrigued on 1.1.2020, 50 cases of glassware Costing ₹ 40,000 to Singh & co for sale on commission @ 5%. on gros, proceedings. G Ltd paid ₹ 500 bor breight and ₹ 600 for packing. Sing & co took delivery of goods on 5-1-2020 and paid ₹ 300 as cleasing Charger, ₹ 200 bor Carnage & ₹ 100 for Godownrent. ₹ 50 for miscellaneous expoubel. They sold 15 Cases @ ₹ 1000 lach, 25 Cases @ ₹ 1200 Cach and 10 casel @ ₹ 1100 each. on April 5th 2020 Seng & Co sent bank draft ₹ 15000 to Glta on account on April 10th Singh & co barwarded an account sales together with a bill exchange for the balance deu. prepare necessary ledger accaents in the books of both the parties. (2019 + 2015) ## Ledger Accounts in the books of G. Ltd ### Consignment Account | Date | RS | Date | RS | |---|---|---|---| | 1/20 To Goods Sent on Consigment Alc | 40,000 | 10/20 | - | | - | - | 15/20 | By Sengh & Co | 56000 | | - | - | - | | | - | 1100 | 25/20 | - | | - | - | 10/20 | - | | 1/20 To Bank Alc | - | - | 10×1100 }| - | | (Freight + Packing charge) | - | - | - | | - | 650 | - | | | 1/20 To Singh & Company | | | - | | Exp Paid (300+200+ 50 | - | - | - | | +100) | - | - | - | | 1/20 | 2800 | - | - | | To Singh & Co (Commision) | - | - | - | | 56000×5% | - | - | - | | - | - | - | - | | - | 11450 | - | - | | 11 To P&L Ale (B/F) | - | - | - | | | 56000 | | 56000 | ## Goods Sent on Consignment Alc | Date | RS | Date | RS | |---|---|---|---| | 1/20 To Trading Ate | 40,000 | 1/20 | By Consignment Ale | 40000 | | - | - | - | - | | 40,000 | - | | 40,000 | ## Consignee Alc (Singh & Co) | Date | RS | Date | RS | |---|---|---|---| | 1/20 To Consigument Alc | 56000 | 5|20 | By Bank AIC | 15000 | | - | - | - | - | | - | - | 5/20 | By Consegnment Ale | 650 | | - | - | 10/20 | - | | - | - | 10/20 | 11 Consigment Ale | 2800 | | - | - | | (Commission) | - | | - | - | 10/20 | | - | | - | - | 10/20 | 11 Bulls receivable | 37550 | | - | 56000 | - | - | | - | - | - | (BIF) | | - | - | - | 56000 | ***Note:*** Godown rent is taken to Consigment Ale *Here, there is no closing stock i.e., entire stock is sold.* ## Ledger Accounts in the books of Consignee ### G, Ltd Account | Date | RS | Date | RS | |---|---|---|---| | 5/20 | TO Bank ALC | 15000 | 11/20 | By Bank Ale | 56000 | | | | | (Sales) | - | | 5/20 | 11 Cash Ale (EXP) | 650 | - | - | | 10/20 | 11 Commission Ale | 2800 | - | - | | - | - | - | - | | - | | - | - | | 11 | | - | - | | - | | nu Bills Payable Ate | 37550 | | - | | | 56000 | | | | | | | | | | | | | | | | | 56000 | | | | | | ### Commission Account | Date | RS | Date | RS | |---|---|---|---| | 10/% TO P&L AIC | 2800 | 10/20 | By Nandini Ltd. Alc | 2800 | | - | - | - | - | | 2800 | - | 2800 | - | ## CONSIGNMENT ACCOUNTS 10. Nandini Ltd Consigned 5000 Kgs of Nandini Ghee to Ashoka dealers, Bengalore. Each kg of ghee costs ₹ 8. Naudene te paid ₹ 50 for Carriage, ₹ 250 for Packing ₹ 200 for insurance in transit. Ashoka dealers sold 3500 Kgs of ghee @ ₹ 9.50 per kg and Expenses were ₹ 500/-on godown & ₹ 750 on salesmen Balary. Ashoka dealers are entitled to a commission of 5%. on sales. 500 kg of ghee was destroyed in the godown. Insurance claim of ₹ 3500 was admitted. ## Prepare the necessary ledger accounts in the books of both the parties. ### Calculation of value of closing stock | Qty | Amount | |---|---| | Goods sent on Consignment @ ₹ 8 | 5000 | 40,000 | | (+) N.R. RXP paid by Consignor: | - | - | | Carriage | - | 050 | | Packing | - | 250 | | Insurance | - | 200 | | Goods in transet | 5000 | 40,500 | | (-) Abnormal Loslin godown | 500 | 4050 | | (40500 x 500) | - | - | | Goods available -> | 4500 | 36,450 | | (-) Sales | 3500 | - | | valeey closing stock | 1000 | 8100 | ## CONSIGNMENT ACCOUNT | RS | RS | |---|---| | To Goods Sent on Consegn | 40,000 | By Ashok dealers | 33250 | | ment Ale | - | 3500 x 9.50 | - | | 11 Bank AtC | 500 | 11 Abnormal Loss Atc | 4050 | | 11 Ashok dealers Alc | 1250 | 11 Consignment Stock | 8100 | | 11 Ashok dealers Ale (Com) | 1662 | AlC | - | | (32250×5%) | - | - | - | | 11 profil & Loss Ate | 1988 | | - | | - | 45400 | | 45400 | ## Ashoka dealers Ate | RS | RS | |---|---| | Consignment Ate | 33250 | By Consigment Alc | 1250 | | (Sales) | - | | | | - | | | 1662 | | - | - | | | | - | 33,250 | | 11 Consignment Alc | -| | | | | 11 Balance c/d | 30 338 | | | | | | | | 33,250 | | 33,250 | ## Goods sent on Consignment AlC | RS | RS | |---|---| | To Trading Ale | 40,000 | By Consignment AlC | 40,000 | | 40,000 | - | - | - | | - | - | - | - | | 40,000 | - | 40,000 | - | ## Abnormal Alc | RS | RS | |---|---| | To Consignment Alc | 4050 | By Insurance co. Ale | 3500 | | | - | 11 P&LAIC (BIF) | 550 | | | 4050 | | | | | | | 4050 | ## Ledger Accounts in the books of consignee ### Nandini Ltd. Alc | RS | RS | |---|---| | To Bank AIK(EXP) | 1250 | By Bark AlC (Sales) | 33250 | | 11 Commission Alc | 1662 | - | - | | 4 Bank A/C (B/F) | 30338 | | | | | - | 33250 | - | | ### Commission Account | RS | RS | |---|---| | To P&L AIC | 1662 | By Nandini Ltd. Alc | 1662 | | - | - | - | - | | 1662 | | 1662 | | ## CONSIGNMENT ACCOUNTS 11. Arun Consigned 100 minitoy Cars to Sanjay to be sold @ his risk. Cost of 1 Car is ₹ 150. But invoice price was ₹ 200. Arun Paid freight ₹ 600 and insurance intransit ₹ 200. Sanjay sent a bankdraft to Arun for ₹ 10,000 as advance & later sent an Accorent sales showing that 80 toy cars were Sold @ ₹ 220 each. Exxl Paid by Sanjay were carriage inwards 225 octroi 775, Godown rent ₹ 500 & Advertisement ₹ 300. Sanjay entitled to a Commission of 5% on sales. ## Journalise the above transactions or the books of Aren and Sanjay and prepare ledger Ales. ### Calculation of value of closing stock | Qty | Amount | |---|---| | Invoice price of goods sent on Consignment @ ₹ 200 Cach | 100 | 20,000- | | Add:-Non recursing Exp of consignor: | - | - | | (Freight 600 + Insurance 200) | - | 800 | | Cost of goods in transit | 100 | 20800 | | Add:-) Non reccurring Exp of Consignee | - | - | | (Carriage 25 + octroi 75) | - | 100 | | Invoice pricef goods received | 100 | 20900 | | Less: Sales | 80 | - | | Vallee of closing stock | 20 | 4180 | | 20900x20 | | - | ## Journal Entries in the books of Arun-Consigner | LNO | Particulars | Dr | Cr | |---|---|---|---| | 1 | Consigriment Account | or | | | | | 20000 | - | | | To Goods sent on consigo mt Ale | | - | | | (Being 100 mine toy cars sent on consignment | - | 20,000 | | | @invoice ₹ 200 to Sanjay) | - | | | 2 | Consignment Account | Ar | | | | | 800 | - | | | To Bank account | | 800 | | | CBeing Exp incurred on freight & insuran | - | - | | 3 | Bank Account | Ar | | | | | 10000 | - | | | To sanjay account | | 10000 | | | (Being bank draft received from Sanjoy | - | - | | | as advance) | - | - | ## Journal Entries in the Books of Sanjay | SINO | Particulars | Dr | Cr | |---|---|---|---| | 4 | Sanjay Accorent | Ar | | | | | 17600 | - | | | To Consignment account | | 17600 | | | [Being 80 Car's sold by Sanjay @₹ 220) | - | - | | 5 | Consignment Accound | Ar | | | | | 900 | - | | | To Sanjay Account | | 900 | | | (Being Expouses incurred by sanjay). | | - | | | (CIW-25, octroi 75, GR 500g Adut 300) | | | | 6 | Consignment Ate | Ar | | | | | 880 | - | | | To Sanjay Ale | | 880 | | | (Being 5%. Commission to Sanjay on 17600 | | | | 7 | Consignment Stock Ale | Ar | | | | | 4180 | - | | | To Consignment Ale | | 4180 | | | (Being the value of unsold stock of 20 | - | - | | | Cars) | | | | 8 | Gods sent on Consignment Afe | AV | | | | To consignment Alc | | 5000 | | | (Being the excess of cost price@ 50 (200~150) | | - | | | per mini lar is removed (100x50) | | - | | 9 | Consignment Account | Ar | | | | | 1000 | - | | | To consignment Stock Reserve Ate | | 1000 | | | (Being the excess of costprice@I 50 bor 206 | | - | | | adjusted) | | | | 10 | Consignment Ale | Ar | | | | To P&L AIC | | 3200 | | | (Being probit on consegnment transferred) | | | ## Goods sent on Consignment Account | | Dr | Cr | |---|---|---| | To Trading Account | 15000 | 15000 | | (Being transfer of goods sent on consignment transferred to trading Account) | - | - | ## CONSIGNMENT ACCOUNTS 12. Ram traders Consigned 100 Computers Costing ₹20,000 Each to Bahadur @10%. above Cost. Ram traders incurred ₹ 500 for Packing and each Computer. The consignee received the Consignment by paying ₹ 1500 for railway Charges ₹ 1300 for insurance till it reaches the godown and ₹ 200 for Carriage. He Submitted an Alc sales as follows 1) 20 Computers Sold @ ₹25000 each for Cash 2) 50 sold @ of 30,000 each on credit 3) 10 taken for his own stock @ ₹ 25000 each Consignee remitted the balance after deducting his Commission @ 10%. on Sales. Assuming that the original entries are made @invoice price and Consignment stock is valued @invoice price. ## Write necessary accounts in the books of Ram traders. ### Calculation of value of closing stock | Qty | Rs | |---|---| | Invoice potce of goods Sent on Conseguint | 100 | 22,00,000 | | @ ₹ 22000 each | - | - | | Add: N. R. Exp paid by consegnor | - | 50,000 | | (500×100) | - | - | | Invoice price of goods in transet | 100 | 2250000 | | Add: N. R. Exp Paid by Consegnee | 100 | 22,53,000 | | (Railway Charges & Insurancet | - | 3000 | | CIW) (1500+1300+200) | - | - | | Less: Sales | 80 | - | | Goods available for Sale | 100 | - | | valeey closing stock | 20 | 450600 | | 2253000×20 | - | - | ## CONSIGNMENT ACCOUNT | RS | RS | |---|---| | To GSC Account | 2200,000 | By Bahadur Alc (Sales) | 20,00,000 | | 11 Bank Alc | 50000 | - | - | | 11 Bahadur Alc (EXP) | 3000 | - | takeover | | 11 Bahadur Alc (Commission) | 200,000 | - | - | | 20,00000×10 | - | 11 Consignment Stock | 250000 | | 11 Stock Reserve Atc | 4000 | Ale | - | | (20×2000) | | | - | | 11 Probet & Loss Alc | 407600 | | | | | 2900,600 | | 4 GSC AIC(Loading)| 450600 | |