Stone consigned goods to Rock on 1 January 19 X6, their value being \(£ 12,000\), and it was agreed that Rock should receive a commission of 5 per cent on gross sales. Expenses incurred by Stone for freight and insurance amount to \(£ 720\). Stone's financial year ended on 31 March 19X6, and an account sales made up to that date was received from Rock. This showed that 70 per cent of the goods had been sold for \(£ 10,600\) but that up to 31 March 19X6, only \(£ 8,600\) had been received by Rock in respect of these sales. Expenses in connection with the goods consigned were shown as being \(£ 350\), and it was also shown that \(£ 245\) had been incurred in connection with the goods sold. With the account sales, Rock sent a sight draft for the balance shown to be due, and Stone incurred bank charges of \(£ 12\) on 10 April \(19 \times 6\), in cashing same.

Stone received a further account sales from Rock made up to 30 June 19X6, and this showed that the remainder of the goods had been sold for \(£ 4,800\) and that \(£ 200\) had been incurred by way of selling expenses. It also showed that all cash due had been received with the exception of a debt for \(£ 120\) which had proved to be bad. A sight draft for the balance due was sent with the account sales and the bank charged Stone \(£ 9\) on 1 July 19X6, for cashing same. You are required to write up the necessary accounts in Stone's books to record these transactions.

Institute of Chartered Accountants