8 mark

16. (a) Explain the differences between sale and consignment. Or (b) Rajani consigned 100 T.V. sets each costing Rs.4000 to santhi madras. Ranjani spent Rs.5000 towards freight and insurance. During transit 5 T.V. sets were badly damaged and insurance company accepted the claim for Rs. 18000 only. Santhi took delivery of the remaining 95 sets and spent Rs.1900 towards direct expenses and Rs.800 towards indirect expenses. Santhi entitled to 5% commission on sales. 80 T.V. sets were sold at Rs.4500 each by Santhi. Show the necessary ledger alcs in the books of Ranjani