(4) Calculation of Commission Sale proceeds (75% of Consignment) Less: Invoice value of sale proceeds (75% of 1,25,000) Excess sale proceeds received over invoice price Therefore, commission is : (1) @ 10% on sales in invoice price (2) @ 25% on excess sale proceeds 1.00.000 (6) Loading on Abnormal Loss 93.750 Total loading on goods sent 6.250 Therefore, loading on goods lost by fire (10%) 25.000 2.500 9.375 1,563 10.938 q37 Dr. Abnormal Loss Account Cr. Date Particulars Date Particulars To Consignment to Madras Alc 13,500 By Bank Alc-daim received 12,000 To Profit and Loss Alc 1,000 By Consignment to Madras Alc (Loading) 2,500 14,500 14,500 Illustration 42 Tanya Motors of Delhi purchased 50 used Maruti cars for 350,00,000. Out of these, 30 cars were sent on consignment to Hari Motors of Kanpur at a selling price of 1,20,000 per car. The consignor paid 60,000 in sending the cars to Kanpur. Hari Motors sold 25 cars for 33,00,000. Hari Motors incurred 30,000 as the selling expenses. Out of the remaining 5 cars, Hari Motors kept one car for their personal use at an agreed price of 1,25,000. 2 cars got damaged and were sold for 2,00,000 only. Owing to fall in market price of old cars, the value of remaining cars in stock be reduced by 10%. Tanya Motors sold 20 cars at Delhi for 25,00,000. Hari Motors is entitled to 5% commission on sales. Prepare the Consignment Account, Trading and Profit and Loss Account of Tanya Motors and the account of Tanya Motors in the books of the consignee. Hari Motors