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On 01 January 2014, Mr. Azmat of Lahore consigned 700 Liters of Petrol to Mr....

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Accounting

On 01 January 2014, Mr. Azmat of Lahore consigned 700 Liters of Petrol to Mr. Bilal of Sialkot. The cost per Liter was Rs. 65, and apart from this cost, the consignor had incurred some other expenses too including: Freight Rs. 1,500; Clearing Charges Rs. 1,000 and Insurance Rs. 2,000. Normal Evaporation has been 2%.

After the receipt of the goods by Consignee on 04 January, he also incurred some expenses such as: Carriage Rs. 2,000, Godown Rent Rs. 5,000 and Salesmen Salaries Rs. 1, 200. Also, the consignee is entitled to 3% regular commission and 2% Del Credere Commission.

On 31 January, an Account Sales was sent by the Consignee to the Consignor with the following details:

Units Sold

1st: 360 Kg @ Rs. 150 per Kg and

2nd: 300 Kg @ Rs. 180 per Kg

Units Lost

?

Bad Debts

10 Units (sold earlier) to Mr. Khawer

Required: (1) Journalize the above Transactions in the Books of Consignor?

  1. Prepare Ledger Account of Consignment?
  2. Prepare Ledger Account of Consignee? And determine the Amount of Settlement between Consignor and Consignee?

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