Question
On 1.7.2012, Mantu of Chennai consigned goods of the value of ` 50,000 to Pandey of Patna. This was made by adding 25% on cost.
On 1.7.2012, Mantu of Chennai consigned goods of the value of ` 50,000 to Pandey of Patna. This was made by adding 25% on cost. Mantu paid ` 2,500 for freight and ` 1,500 for insurance. During transit 1 10 th of the goods was totally destroyed by fire and a sum of ` 2,400 was realised from the insurance company. On arrival of the goods, Pandey paid ` 1,800 as carriage to godown. During the year ended 30th June 2013, Pandey paid ` 3,600 for godown rent and ` 1,900 for selling expenses. 1 9 th of the remaining goods was again destroyed by fire in godown and nothing was recorded from the insurance company. On 1.6.2013, Pandey sold half ( 1 2 ) the original goods for ` 30,000 and charged a commission of 5% on sales as on 30.6.2013, Pandey sent a bank draft to Mantu for the amount so far due from him. You are required to prepare the following ledger accounts in the books of Mantu of Chennai for the year ended 30.6.2013.
Please give full details with supporting workings.
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