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Arun sends goods on consignment to Seemu. The terms are that Seemu will receive 10% commission on the price (which is cost plus 25%) and 20% of any price realised above the invoice price. Seemu will meet his expenses himself, goods to be sent freight paid.
Arun sent goods whose cost was Rs. and spent Rs. 1,500 on freight, forwarding, etc. Seemu accepted a bill for Rs. Immediately on receiving the consignment. His expenses were Rs. 200 as rent and Rs. 100 as insurance. Seemu sold ¾ of the goods for Rs. 19,500. Part of the sales were on credit and one customer failed to pay Rs. 400.
Problem 1: Give Consignment Account and Seemu's Account in the books of Arun and Arun's Account in the books of Seemu.
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