On 8 February 19X8 PJ, a London trader, consigned 120 cases of goods to MB, an agent

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On 8 February 19X8 PJ, a London trader, consigned 120 cases of goods to MB, an agent in New Zealand.

The cost of the goods was £25 a case. PJ paid carriage to the port £147 and insurance £93.

On 31 March 19X8 PJ received an account sales from MB, showing that 100 cases had been sold for £3,500 and MB had paid freight, at the rate of £2 a case, and port charges amounting to

£186. MB was entitled to a commission of 5 per cent on sales. A sight draft for the net amount due was enclosed with the account sales.

You are required to show the accounts for the above transactions in the ledger of PJ and to show the transfer to profit and loss account at 31 March 19X8.

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Related Book For  book-img-for-question

ISE Business Accounting Volume 1

ISBN: 9780273638391

8th Edition

Authors: Frank Wood, Alan Sangster

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