Problem 1

Mr. X Consignor provides you the following information

1. Good sent by Mr. X to his agent Mr. Y consignee 10,000 units @ 20 per unit
2. Mr. X's Forwarding and Insurance Expenses 50,000….
3. Goods still-in-transit - 200 units
4. Agent took delivery and brought the goods to his godown after incurring expenses @ 1
per unit
5.Goods sold by Agent - 7,300 units @ 30.
Required: Calculate the amount of Closing Stock.

Problem 2
1 Ram & Co. of Calcutta consigned 50 cases of goods at 200 each to Nathan of Mumbai.
2 The consignor pays 200 for insurance and for freight 300.
3 Nathan sent an account sales showing the gross proceeds at 24,000.
4 The expenses paid by Nathan were dock dues 20, carriage 50, warehousing expenses
130.
5 He sent the amount due to the consignor after deducting 4 per cent commission.
Give journal entries in the books of both the parties.

Problem 3
1. Sen & Co consignor of Calcutta consign goods costing 25,000 to their agent, Mustak
of Mysore. consignee
2. On which they pay freight, insurance and charges 1,500,
3. And drawn on him a bill of exchange at 90 days for 20,000.
4. They discount the bill at Mercantile Bank being charged 200 therefor.
5. After two months they received from their agent an Account Sales informing that the
entire consignment has been sold for 35,000
6. And expenses amounting to 700 have been incurred and showing as a deduction the
agreed commission of 2 per cent on the amount realized.
7. A draft on the Syndicate Bank was enclosed for the balance due. Show important
ledger accounts in the books of both the parties.

Problem 4

1. On 1st November, 2013, C of Calcutta sends goods costing 1, 00,000 to D of Delhi on

consignment basis.
2. C paid 5,000 as railway freight and 2,000 as insurance.
3. On 31st December, 2013, an Account Sales was received from D disclosing that the
entire quantity of goods were sold for 1, 50,000 out of which, 30,000 was sold on
credit.
 4. A customer who purchased goods for 5,000 failed to pay and the debt proved bad.
5. All other debts were collected by D in Full.
6. As per agreement, D is allowed a commission @ 10% on sales.
7. The consignee is given a del credere commission of 5% on sales (In addition to
ordinary commission)
8. D sends the amount due to C by a cheque.
Prepare necessary Ledger accounts in the books of C and D.

Problem 5
1. M/s. Diamond Cements Ltd., Narsinghgarh consigned to M/s Somani Bros. of Bhopal,
5,000 Cement bags costing 80 per bag.
2. M/s Diamond Cements Ltd. paid 4,500 for railway freight, 2,500 for insurance and
2,200 for sundry expenses.
3. On receipt of consignment M/s Somani Bros. accepted a Bill for 2, 00,000
4. which was discounted by the consignors at the bank for 1,99,500 …500 dis
5. M/s Somani Bros. sent an Account Sales which shows as
Cash sales of 4,000 bags @ 95 each.
Expenses paid by Somani Bros were (i) Godown Rent 2,000; (ii) Selling Expenses
6,000.
6. Somani Bros. remitted the balance due by Bank Draft after deducting their
expenses and commission at 2% on gross sales.
Show Consignment Account and Consignee's Account in the books of Consignor and the
Consignor's Account in the books of the Consignee.
Problem 6
1. Karanth sold goods on behalf of Vijay Sales on consignment basis. On January 1, 2013,
he had with him a stock of 20,000 on consignment.
2. Karanth had instruction to sell the goods at cost plus 25%
3. and was entitled to a commission of 4% on sales, in addition to 1% del credere
commission on total sales
4. During the year ended 31st December, 2013, cash sales were 1,20,000, credit sales
1,05,000
5. and Karanth's expenses relating to the consignment 3,000 being salaries and
insurance.
6. Bad debts were 3,000 and goods sent on consignment 2,00,000.
From the above, prepare Consignment Account and Consignee's Account in the books of
Vijay Sales and important Ledger accounts in the books of Karnath.

Problem 7
1. Arun of Meerut consigned 100 sewing machines to Sanjay of Ranchi to be sold on
his risk. The cost of one sewing machine was 150, but the invoice price was 200.
2. Arun paid freight 600 and insurance in transit 200.
3. Sanjay sent a bank draft to Arun for 10,000 as advance payment
4. and later sent an Account Sales showing that 80 sewing machines were sold at 220
 each.
5. Expenses incurred by Sanjay were carriage inward 25, Octroi 75, godown rent 500
and advertisement 300.
6. Sanjay is entitled to a commission of 5% on sales.

Problem 8
Nanak of Calcutta consigned 100 Prestige Cookers to Rajat of Jalpaiguri costing 90 per
cooker, but invoiced at a price so as to show 20% profit on such invoice price. Nanak spent
800 as freight and insurance. Rajat was entitled to a commission of 10% on gross sales.
Rajat sold 75 cookers @ 150 each and spent 150 as dock dues and 200 as miscellaneous
expenses.
Show Consignment A/c and Consignee's A/c in the books of Consignor, and Consignor's
A/c in the books of Consignee.

Question 9
1. Sham of Mumbai consigned to Sundar of Bangalore 320 units costing 180 per unit to
be sold on consignment.
2. He paid 500 for loading 300 for carriage and 200 for insurance.
3. A bill for 12,000 was received from Sundar as advance.
4. This bill was discounted by Sham at 11,800.
5. Sundar paid 600 for unloading 300 for cartage and 300 for advertisement.
6. He returned 20 defective units to Sham (to be recorded at basic CP)
7. He Sold remaining units for 64,000.
8. He is entitled to a commission of 6½% on gross sales.
9. He settled his account through a Bank Draft.
Prepare the necessary accounts in the books of both parties.

Problem 10
M/s D & Co. of Mumbai consigned to B & Co. of Nagpur 1,000 bags of tobacco costing
250 per bag. They were invoiced at 20% above cost price.
M/s D & Co. paid 1,500 for insurance, 3,500 for carriage and 5,000 for miscellaneous
expenses.
On receiving the consignment Mr. B & Co. accepted a bill for half the amount of invoice
price.
B & Co. sent an account sales which shows as
(a) Cash Sales of 600 bags @ 350 each.
(b) Credit Sales of 300 bags @ 400 each.
(c) B & Co. took 50 bags for his own use @ 320 per bag.
(d) Expenses paid by B & Co. were godown rent 3,000 and selling expenses 5,000.
(e) B & Co. remitted by balances due by a draft after deducting his expenses and
commission @ 10% on sales and del credere commission @ 2% on credit sales of 300
bags only.
Show Consignment A/c and B & Co.’s A/c in the Books of M/s D & Co. and D & Co.’s A/c
in the books of B & Co.
Problem 11
Mr. X sent 250 units costing 10,000 each to Mr. Y. The goods were to be sold so as to yield
a gross profit of 20% on sales. Mr. Y sold 150 units @ 14,200 per unit on credit and 75 units
@ 14,000 for cash. Calculate the commission due to Mr. Y in each of the following
alternative cases.
Case (a) : Mr. Y was entitled to a commission of 500 per unit.
Case (b) : Mr. Y entitled to an ordinary commission of 5% and del-credere commission of
2%.
Case (c) : Mr. Y was entitled to an ordinary commission of 5% on total sales, del-credere
commission of 2% on credit sales and an over-riding commission of 25% of any surplus
realised.
Case (d) : Mr. Y was entitled to a commission of 500 per unit sold plus 25% of any surplus
price realised.