When the abnormal loss of 500 kgs takes place in the consignee's godown (other things remaining the same) the value of abnormal loss and stock on consignment will be different -- which are calculated as under: Ascertainment of Abnormal Loss and Unsold Stock Value of the goods received by the consignee 2,05,000 Add: Proportionate expenses of the consignee (cartage) 1.000 2,06,000 The consignee received 4,975 units (5,000 kgs - 25 kgs normal loss) Therefore, Value of Abnormal Loss 2,06,000 4,975 500 = 220,704 (approx.) Value of Unsold Stock 2,06,000 * 1,475 = 261,075 (approx.). Profit on consignment will be 57,179. 4.975 929 Illustration 17 On 1st January, 2017 ITC Ltd. of Calcutta consigned 10,000 kg of Sunflower Oil, costing 40 per kg to Dinesh & Co. of Delhi. ITC Ltd. paid 40,000 as freight and insurance. 200 kg of oil were lost on 15.1.2017 in transit. The insurance claim was settled for 7,500 and was paid to the consignor directly. Dinesh & Co. took delivery of the consignment on 29th January 2017, and accepted a bill drawn upon them by ITC Ltd. for 2,00,000 for 2 months. On 31st March, 2017 an Account Sales was received from Dinesh & Co. containing the following information: (1) 8,000 kg were sold @ 55 per kg.; (ii) Unloading charges 9,500; (iii) Godown rent ? 1,250; (iv) Printing & Advertisement 10,000; and (v) 200 kg were lost due to leakage which is considered as normal. Dinesh & Co. is entitled to a commission @ 5% on sales. They paid the amount due in respect of the consignment on 31st March itself. You are required to show: (i) Consignment to Delhi Account: (ii) Dinesh & Co. Account; and (iii) the Loss in Transit Account in the Books of ITC Ltd