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279, Amount Q. 19. X Consigned to Y 2,000 kg of tea costing 80 per kg. X incurred 2,500 on freight and *850 on insurance.
279, Amount Q. 19. X Consigned to Y 2,000 kg of tea costing 80 per kg. X incurred 2,500 on freight and *850 on insurance. After receiving the goods Y spent 2,970 on cartage, 1,200 on selling and *600 on godown rent. Y was allowed a commission of 10% on sales. 1,200 kg of tea was sold at 115 per kg. 20 kg of tea was lost due to breakage of a chest in transit, which was considered to be normal. 150 kg of tea was lost by fire in godown of the consignee. The insurance company admitted a claim of 10,000. Prepare Consignment A/c, Y's A/c and Abnormal Loss A/c in the books of X. [Ans. Profit 21,600; Abnormal Loss 12,600; Abnormal Loss transferred to P & LA/c 2,600; Stock 52,920. Balance of Consignee's A/c 1,19,430.]
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