AID15354: Ajay of Mumbai consigned to Vijay of Delhi, goods to be sold at invoice price which represents 125% of cost. Vijay is entitled to a commission of 10% on sales at invoice price and 25% of any excess realised over invoice price. The expenses on freight and insurance incurred by Ajay were Rs.10,000. The account sales received by Ajay shows that Vijay has effected sales amounting to Rs.1,00,000 in respect of 75% of the consignment. His selling expenses to be reimbursed were Rs.8,000. 10% of consignment goods of the value of Rs.12,500 were destroyed in fire at the Delhi godown and the insurance company paid Rs.12,000 net of salvage. Vijay remitted the balance in favour of Ajay. Prepare consignment account and the account of Vijay in the books of Ajay alongwith the necessary calculations.

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Q: Ajay of Mumbai consigned to Vijay of Delhi, goods to be sold at invoice price which represents 125% of cost. Vijay is entitled to a commission of 10% on sales at invoice price and 25% of any excess realised over invoice price. The expenses on freight and insurance incurred by Ajay were Rs.10,000. The account sales received by Ajay shows that Vijay has effected sales amounting to Rs.1,00,000 in respect of 75% of the consignment. His selling expenses to be reimbursed were Rs.8,000. 10% of consignment goods of the value of Rs.12,500 were destroyed in fire at the Delhi godown and the insurance company paid Rs.12,000 net of salvage. Vijay remitted the balance in favour of Ajay. Prepare consignment account and the account of Vijay in the books of Ajay alongwith the necessary calculations.