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On 1st July, 2006 Radio House of Delhi consigned 200 Radios to Banerjee Bros. of the Calcutta. The cost of each radio was Rs. 400. Radio House paid Rs. for freight and insurance. On 7 July, 2006 Banerjee Bros. accepted a 3 months bill drawn upon them by Radio House for Rs, Banerjee Bros. paid Rs. 2,200 as rent and Rs. for advertisement and upto 31st December, 2006 (on which date Radio House close their books) they sold 180 radios at Rs. 500 each. Banerjee Bros. were entitled to a commission of on sales.
Problem 1: Give Journal entries and prepare necessary accounts to record the above transactions in the books of the parties.
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