Goods at an invoice value of ~ 1,32,000 were consigned by Choudhury & Co. of Calcutta to their agent Gupta & Co. of Allahabad at a proforma invoice of 20% profit on cost.
Freight paid by the consignor amounted to ~ 5,000. Gupta & Co. was allowed 5% ordinary commission and 3% del credere commission on gross sales. They were also allowed 5% of the net profits as extra commission after charging such commission. Allahabad expenses were : landing and clearing charges ~ 1,020, godown insurance premium ~ 2,500.
3/4th of the goods were sold at 25% profit on sales, 1/10th of the balance of goods were destroyed by fire and a claim for ~ 8,500 was settled by the insurance company.
Prepare Consignment Account, Gupta & Co. Account, Stock Destroyed Account and Consignment Stock Account in the books of Choudhury & Co.