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2.16,000 ? To Bank Alc 2016 ? By Bank Alc (sales) Unloading charges 1,000 Fitting charges 2.000 Godown rent 4,200 To Commission Received Alc 10.800
2.16,000 ? To Bank Alc 2016 ? By Bank Alc (sales) Unloading charges 1,000 Fitting charges 2.000 Godown rent 4,200 To Commission Received Alc 10.800 31.12.2016 To Advance Against Consignment Ac 1,00,000 To Bank Alc (final payment) 98,000 2.16,000 Dr. Advance Against Consignment Account Date Particulars Date Particulars 30.4.2016 To Bank A/C 1,00,000 31.12.2016 Seth Bros. Alc 2.16.000 Cr. 1,00,000 Date Memo 4,000 1,000 1,000 2,000 4.200 q34 4200 10.800 14,700 236,700 Invoice PriceMemorandum Column Method When goods are sent at a proforma invoice price this method may be used for writing up the Consignment Account and Goods sent on Consignment Account. This method is a modification of the cost price method. Under this method, Consignment Account is provided with an additional column in which memorandum entries in respect of invoice value of goods consigned, amount of sales and value of unsold stock are recorded. This memorandum column is meant only for information and the profit or loss on consignment will not be affected. The solution of the previous illustration under this method is given below: Dr. Consignment to Paradeep Account Cr. Particulars Amount Date Particulars Memo Amount 1.1.2016 To Goods Sent on Consignment Ac 2,00,000 1,60,000 31.12.2016 By Panigrahi & Sons Alc 2,16,000 2,16,000 To Bank Alc (freight) 4,000 By Stock Ac 20,700 16,700 31.12.2016 To Panigrahi & Sons Alc Unloading Fitting charges 2,000 Godown rent Commission 10.800 To Proft & Loss on Consignment Alc 50,700 2,36,700 2,32,700 232,700 Goods Sent on Consignment Account Cr. Date Particulars Amount Date Particulars Memo Amount 31.12.2016 To Purchases Alc 2,00,000 1,60,000 1.1.2016 By Consignment to Paradeep Alc 2,00,000 1,60,000 It should be noted that the memo column may be added and balanced but the profit or loss disclosed by that column is immaterial. The actual profit or loss will be disclosed by amount column of the Consignment Account. Other accounts will appear as usual, so these accounts have not been shown. Illustration 38 Goods at an invoice value of 3 1,32,000 were consigned by Choudhury & Co. of Calcutta to their agent Gupta & Co. of Allahabad at a proforma invoice of 20% profit on cost. Freight paid by the consignor amounted to 5,000. Gupta & Co. was allowed 5% ordinary commission and 3% del credere commission on gross sales. They were also allowed 5% of the net profits as extra commission after charging such commission. Allahabad expenses were : landing and clearing charges 1.020. godown insurance premium 2,500. 3/4th of the goods were sold at 25% profit on sales. 1/10th of the balance of goods were destroyed by fire and a claim for 8,500 was settled by the insurance company. Prepare Consignment Account, Gupta & Co. Account, Stock Destroyed Account and Consignment Stock Account in the books of Choudhury & Co. Dr. Memo
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