On 1st January, 2015 Menon sent goods to Gupta to be sold on consignment basis @ 5% commission. Goods costing ~ 6,00,000 were sent and ~ 50,000 expenses were incurred. Gupta has to incur ~ 20,000 expenses for landing and 75% of the goods were sold out for ~ 7,00,000.
Gupta sent the amount due from him with the Account Sales on 31st March, 2015. But he wanted to return the balance goods as he was not agreeable to carry on as a commission agent. He was, however, persuaded to continue on joint venture basis for 1/3rd profit. ~ 2,50,000 worth of goods were further despatched by Menon.
All goods (except ~ 25,000 which were taken over by Gupta for the same amount) were sold out for ~ 6,00,000 before 30th June, 2015. Menon incurred ~ 25,000 as expenses and Gupta’s expenses amounted to ~ 15,000. The account was settled on 30th June, 2015.
Show necessary accounts in the books of both the parties.