✍️ Get Writing Help
WhatsApp

Expenses

Messrs Goswami Brothers were appointed agents by Sunrise Limited in 2001. You are given the following particulars relating to the year 2014-15 :

(i)       Cost of goods despatched by the Company on consignment ~ 7,50,000.

(ii)      Goods fully destroyed in transit (original cost) ~ 50,000.

(iii)     Expenses incurred by the company towards : Freight ~ 2,500; Insurance ~ 1,500.

(iv)     Expenses incurred by Goswami Brothers :

Landing and clearing ~ 1,500; Godown rent ~ 1,000; Transport charges ~ 1,000; Advertisement ~ 800; Insurance

~ 800.

(v)      Advance remitted by the Agent ~ 1,50,000.

(vi)     Bills payable accepted ~ 25,000.

(vii)    Goods destroyed by fire (at original cost) in Agent’s godown ~ 35,000.

(viii)   Bad debts ~ 3,000.

(ix)     Unsold stock with Agent at the close of the year (at original cost) ~ 50,000.

(x)      Insurance claim recovered by the consignor towards loss in transit ~ 48,000.

(xi)     Insurance claim recovered by the consignee towards loss by fire ~ 35,000.

All sales were affected by the Agent at 25% on original cost. He is entitled to a commission of 10% on gross sales. You are required to show the Consignor’s Account (Sunrise Ltd.) as would appear in the books of Goswami Brothers.

For faster services, inquiry about  new assignments submission or  follow ups on your assignments please text us/call us on +1 (251) 265-5102