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Stone consigned goods to Rock on 1 January 19X8, their value being 12,000, and it was agreed that Rock should receive a commission of 5

Stone consigned goods to Rock on 1 January 19X8, their value being 12,000, and it was

agreed that Rock should receive a commission of 5 per cent on gross sales. Expenses incurred by

Stone for freight and insurance amount to 720. Stones financial year ended on 31 March 19X8,

and an account sales made up to that date was received from Rock. This showed that 70 per cent

of the goods had been sold for 10,600 but that up to 31 March 19X8, only 8,600 had been

received by Rock in respect of these sales. Expenses in connection with the goods consigned were

shown as being 350, and it was also shown that 245 had been incurred in connection with the

goods sold. With the account sales, Rock sent a sight draft for the balance shown to be due, and

Stone incurred bank charges of 12 on 10 April 19X8, in cashing same.

Stone received a further account sales from Rock made up to 30 June 19X8, and this showed

that the remainder of the goods had been sold for 4,800 and that 200 had been incurred by way

of selling expenses. It also showed that all cash due had been received with the exception of a debt

for 120 which had proved to be bad. A sight draft for the balance due was sent with the account

sales and the bank charged Stone 9 on 1 July 19X8, for cashing same. You are required to write

up the necessary accounts in Stones books to record these transactions.

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