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Date q31 Date Particulars Particulars To Consignment to John Alc 10,00,000 By Consignment to John Alc (Expenses) 12,500 By Consignment to John Alc Commission) 1,00,000
Date q31 Date Particulars Particulars To Consignment to John Alc 10,00,000 By Consignment to John Alc (Expenses) 12,500 By Consignment to John Alc Commission) 1,00,000 By Bank Alc (Final payment 8,87,500 10,00.000 10,00,000 Working Notes: (1) Valuation of Abnormal Loss (2) Value of Closing Stock Cost of goods sent (2,000 mt.) 16,00,000 Total cost of goods sent (2,000 mt.) 16,20,000 Add: Non-recurring expenses upto the accident 20,000 Less: Abnormal Loss 4,05,000 Total cost of goods sent (2,000 mt.) 16.20,000 Value of the goods received by John 12,15,000 Therefore, value of abnormal loss (* 16,20,000/2,000 x 500) 4,05,000 Add: Non-recurring expenses of John (clearing charges) 4,500 Less: Salvage Value 10,000 Total cost of goods received by John (1,500 mt) 12,19,500 Actual value of Abnormal Loss 3,95,000 Therefore, value of closing stock R 12,19,500 /1,500 x 500) 4,06,500 Add: Salvage value of damaged stock 10,000 4,16,500 Illustration 24 Messrs Goswami Brothers were appointed agents by Sunrise Limited in 2011. You are given the following particulars relating to the year 2016-17: (1) Cost of goods despatched by the Company on consignment 7,50,000 (ii) Goods fully destroyed in transit (original cost) 50,000. (iii) Expenses incurred by the company towards : Freight 2,500; Insurance 1,500. (iv) Expenses incurred by Goswami Brothers : Landing and clearing + 1,500; Godown rent 3 1,000; Transport charges ? 1,000; Advertisement ? 800; Insurance *800. (v) Advance remitted by the Agent 1,50,000. (vi) Bills payable accepted ? 25,000. (vii) Goods destroyed by fire (at original cost) in Agent's godown 35,000. (viii) Bad debts 3,000. (ix) Unsold stock with Agent at the close of the year (at original cost) 50,000. (x) Insurance claim recovered by the consignor towards loss in transit 48,000. (xi) Insurance claim recovered by the consignee towards loss by fire 35,000. All sales were affected by the Agent at 25% on original cost. He is entitled to a commission of 10% on gross sales. You are required to show the Consignor's Account (Sunrise Ltd.) as would appear in the books of Goswami Brothers
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