Answer to Question #245171 in Accounting for Maanat

Question

Canodia oil milds, delhi consigned 500 tins of vanaspati ghee to Aggrawal bros, jalandhar. Each tins cost Rs 132@Rs8 per kg. Oil mills paid Rs 50 as carriage Rs 250 as freight and Rs200 as insurance in transit............................show the necessary account in the books of both the parties

Answer 1

Solution:

Canodia oil mills is the consignor.

Aggrawal bros is the consignee.

Journal entries in the books of Canodia oil mills (the consignor):

Cost of goods consigned = 500 tins x 132 = Rs.66,000

 

Dr. Consignment to Aggrawal bros A/c                                 66,000            

             Cr. Goods sent on consignment A/c                                                     66,000

(Being goods sent on consignment to Jalandhar)

 

Dr. Consignment to Aggrawal bros A/c                                      500

              Cr. Cash A/c                                                                                              500

(Being Carriage, freight, and insurance incurred by oil mills in transit)

 

No entries will be made in the books of the consignee.

 

The ledger accounts are as follows: