AID15351: Vikram Milk Foods Co. Ltd. of Vikrampur sent to Sunder Stores, Sonepuri 5,000 kgs of baby food packed in 2,000 tins of net weight 1 kg and 6,000 packets of net weight 1/2 kg for sale on consignment basis. The consignee’s commission was fixed at 5% of sale proceeds. The cost price and selling price of the product were as under:

100.00

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Q: Vikram Milk Foods Co. Ltd. of Vikrampur sent to Sunder Stores, Sonepuri 5,000 kgs of baby food packed in 2,000 tins of net weight 1 kg and 6,000 packets of net weight 1/2 kg for sale on consignment basis. The consignee’s commission was fixed at 5% of sale proceeds. The cost price and selling price of the product were as under:

—————1 kg. tin——-1/2 kg. packet

—————-Rs.———Rs.

Cost Price—10—6

Selling Price—15—7

The consignment was booked on freight “To Pay” basis, and freight charges came to 2% of selling value. One case containing 50 1 kg. tins was lost in transit and the transport carrier admitted a claim of Rs.450.

At the end of the first half-year, the following information is gathered from the “Account Sales” sent by the consignee:

(i)  Sale proceeds:————–1,500 1 kg. tins

————————————4,000 1/2 kg. packets

(ii) Store rent and insurance charges Rs.600.

Find out the value of closing Inventory on consignment.

Show the Consignment A/c and the Consignee’s A/c in the books of Vikram Milk Food Co. Ltd. assuming that the consignees had paid the amount due from them.