Question
Bombay Co sent on 1st October, 2019, 50 Mixer Machines to Nasser Co of Delhi to be sold on behalf of Bombay Co. The cost
Bombay Co sent on 1st October, 2019, 50 Mixer Machines to Nasser Co of Delhi to be sold on behalf of Bombay Co. The cost of one Mixer Machine was $ 2,500 but the invoice price was $ 3,000. Bombay Co Paid $ 3,000 on insurance and freight. Nasser Co received the Machines on 19 October, 2019 and signed a 3 months notes to Bombay for $ 75,000. Nasser Co paid $ 1,300 as rent and $ 400 as insurance and by 31st March had disposed of 40 Mixer Machines at $ 3,320 each. Nasser Co is entitled to a commission of 6 per cent on sales including a del credere commission of 1%. Nasser Co sold 10 Mixer Machines on credit and was not able to recover sale proceeds of one Mixer Machines because of insolvency of the debtor.
(i) Prepare all the ledger accounts in the books of Bombay Co; also (ii) journalize all the transactions relating of consignment.
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