CONSIGNMENT QUESTIONS

[Link]. Naveen, a consignor send goods on consignment costing 5 ,00,000 to Mr. Kumar, a consignee. Mr.
Kumar sold goods for cash at 4 ,00,000 and on credit at 2,00,000. The customer fails to pay 15,000. Mr.
Kumar is entitled to an ordinary commission at 10% and Del-credere commission at 5%. Compute the total
commission due to Mr. Kumar and the actual amount to be transferred to Profit & Loss Account.
2. Mr. Santosh consigned goods costing 50,000 to Mr. Shashi on consignment basis. The entire stock was
sold out by Mr. Shashi for ? 65,000. Mr. Shashi was entitled to receive 5% ordinary commission and 2.5%
overriding commission. Compute the total amount of commission payable to Mr. Shashi.
[Link]. Avinash send goods on consignment costing 5,50,000 to Mr. Akash. Mr. Akash sold the same for
7,50,000. As per the consignment terms, Mr. Akash is entitled to receive 6% ordinary commission, 3% Del
Credere commission and 1.5% Overriding commission. Compute the total amount of commission payable to
Mr. Akash.
4. Mr. Guru sent 3,500 units costing 750 each to Mr. Govind. Mr. Govind sold 2,500 units at 1,000 entitled
to an ordinary commission of 5%, Del-credere commission of 3% and over-riding commission of 2%.
Compute the total amount of commission payable to Mr. Govind.
[Link]. Manjunath sent 5000 units costing 1,000 each to Mr. Eshwar. The goods were to be sold so as to yield
a gross profit of 20% on sales. Mr. Eshwar sold 25,00 units at 1,250 per unit on credit and 1,500 units at
1,150 each on cash basis. The customer fails to pay ₹2,500. Compute the ordinary commission at 5%, Del-
Credere commission at 3% and overriding commission at 2% on any surplus realised by Mr. Eshwar and the
amount to be transferred to Profit and Loss Account.
6 .(Abnormal loss and closing stock)
Bhaskar consigns, 12,00 units of a product costing 300 each to Chandan. He incurs * 6,000 for carriage
expenses. 60 units of the product are stolen in transit. Chandan receives the remaining goods, and sells 1,020
units at 460 per unit. Expenses incurred by him amounted to 4,260, the entire amount being non-recurring.
He reports a normal loss of 24 units. Find the value of abnormal loss and closing stock.
7. M/s Raghu and Co. of Delhi consigned on 15th March 2012, 45 cases of glass at cost price 45,000 to
Reddy and Co. of Hyderabad for sale on commission at 5% on gross sale proceeds. The consignor paid
freight and carriage amounting to 539. The goods arrived at Hyderabad on 20th March 2021, Reddy and Co.
paid clearing charges 235, sundry charged ? 59, carriage? 102 and godown charges 90.
The goods were sold by Reddy and Co. as under 15 cases at ? 1,000 per case, 22 cases at? 1,050 per case
and the remaining 8 cases at ? 1,250 per case. On June 21, 2021, Reddy and Co. sent a draft for 10,000 to
M/s Raghu and Co. on account. On 1st July 2021, Reddy and Co. forwarded an account sales together with a
Bill of Exchange for the balance.
Give journal entries to record the above transactions in the books of consignor and consignee.
Calculations are to be made to the nearest Rupee.
8. Krishna Murthy of Bengaluru sent a consignment of 2,000 articles to his agent Sri Raghavan of Tumkur at
an invoice price of 20 per article. Railway charges, cartage and insurance amounted to 10% of the total
invoice price.

Raghavan sold 1,500 articles at ? 30 each and sent an account sales enclosing a bank draft fro the balance
after deducting (i) his advance of * 5,000, (ii) his expenses * 500 and (iii) his commission ar 10% on gross
100 articles were lost in transit and the insurance company admitted the claim for 1,100. Show the
Consignment Account and Consignee's Account in the books of the Consignor.
9. On 1.1.2021 Chetan of Chennai dispatched to Raghu of Mysore, 500 chairs at an invoice price of 300
each, which was 25% above the cost price. He paid 200 for packing and 300 for carriage and insurance.
Chetan draws three months bill for 50,000 which was accepted by Raghu and Chetan discounted the same
for ₹ 49,800.
[Link] received the consignment on 15.1.2021 and incurred 100 for unloading and carriage, 500 for
selling expenses and 1,000 for salesman salary. Raghu returned 50 chairs and sold 200 chairs at 330 each
and 200 chairs at 350 each on credit. Raghu sent a bank draft for the amount due after deducting expenses
and commission at 10% on sales and del-credere commission 3% on credit sales. On 30.3.2021 market value
of chair was 250 each (closing stock).
All the money due was collected from debtors except 3,000 from Mr. Kumar, a debtor. Prepare necessary
Ledger Accounts in the books of Chetan.
11. On 1.1.2021 Chetan of Chennai dispatched to Raghu of Mysore, 500 chairs at an invoice price of 300
each, which was 25% above the cost price. He paid 200 for packing and 300 for carriage and insurance.
Chetan draws three months bill for 50,000 which was accepted by Raghu and Chetan discounted the same
for ₹ 49,800.
Raghu received the consignment on 15.1.2021 and incurred 100 for unloading and carriage, 500 for selling
expenses and 1,000 for salesman salary. Raghu returned 50 chairs and sold 200 chairs at 330 each and 200
chairs at 350 each on credit. Raghu sent a bank draft for the amount due after deducting expenses and
commission at 10% on sales and del-credere commission 3% on credit sales. On 30.3.2021 market value of
chair was 250 each (closing stock).
All the money due was collected from debtors except 3,000 from Mr. Kumar, a debtor. Prepare necessary
Ledger Accounts in the books of Chetan.
12. Madan of Bengaluru consigns goods to Swamy of Davangere to be sold at or above invoice price.
Swamy is to get 10% commission on sales at invoice price plus 20% of any surplus price realized. Madan
draws on swamy at 60 days bill for 80% of the invoice price the balance of the proceeds being remitted by
the bank draft by Swamy after deduction of his commission immediately upon sales.
On 1st Jan, 2020 Madan consigned to Swamy goods whose total cost including freight was 1,50,000 the
invoice price of which was t 2,25,000. Sales by Swamy by 30th June 2020 amounted to? 2,05,000. Goods
unsold on 30th June 2020 with Swamy were of invoice price 67,500 (Cost including freight 45,000). On
30th June 2020 Madan had received from Swamy by the bank draft 49,750, certain remittances being in
transit on 30th June 2020.
13. M/S Sagar and company consigned 1500 tins costing 600 per tin to their agent Manohar Stores,Kolkata.
The tins were invoiced at proforma price of * 800 per tin. The agent sold 900 tins at 810 per tin for cash, 400
tins at 850 on credit. The Sagar and Co. paid 5,000 as freight and 2,000 as insurance.
They drew a bill on Manohar stores at 3 months for 6,00,000 which was duly accepted by the latter.
The expenses incurred by the Manohar stores were carriage * 500, Octroi 1,500 and storage rent? 1,100 they
were entitled to 5% commission and 2% del-credere commission on total sales. They sent their account sales
to their principal showing as a deduction there from their commission and the various expenses incurred by
them.
Prepare necessary ledger account sin the books of M/s Sagar and Co.