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A of surat consigns goods to B of jaipur to be sold at or above price Be is entitles to get a ommission of 8% on sales at invoice price plus 25% of any surplus price realized.
B accepted a bill of exchange drawn by A amounting to 50% of the invoiced price .In the year 2013 goods consigned by A were invoiced at Rs.2,50,000. these goods cost to Rs.2,00,000 (including freight). sales made by B during the year amounted to Rs.2,35,000.
At the end of the year goods unsold with B represented an invoice value of Rs.60,000.
During the year, A had recieved from B Rs.40,000 by bank drafts,certain remittances being in transit on 31st decemnber 2013.
Prepare necessary ledger accounts in the books of both thep arties .also show how the consignment stock will appear in the balance sheet.
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