andana Traders of Delhi purchased 10,000 pieces of Sarees @

`

100 per Saree. Out of these Sarees,

6,000 Sarees were sent on consignment to Vastralaya of Jabalpur at the selling price of

`

120 per

Saree. The consignors paid

`

3,000 for packaging and freight.

Vastralaya sold 5,000 Sarees at

`

125 per Saree and incurred

`

1,000 for selling expenses and

remitted

`

5,00,000 to Delhi on account. They are entitled to a commission of 5% on total sales

plus a further 20% commission on any surplus price realised over

`

120 per Saree.

3,000 Sarees were sold at

`

110 per Saree.

Owing to fall in market price, the value of the inventories of Sarees in hand is to be reduced by 10%.

Prepare the Consignment Account and Trading Account in the books of Vandana Traders and

their account in the books of the agents Messrs Vastralaya of Jabalpur