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Question 1: A consigned to B on 1st January 2018, 600 bales of cotton costing Tk.120 per bale. Freight charges incurred on the consignment were Tk.6,000. A drew a bill on B for Tk.45,000 payable on 30th June,2018 which B accepted. The bill was discounted by A with his banker on 1st March,2018 at 10% p.a. B rendered account to A on 31st March 2018 showing sales of 300 bales for Tk.90,000 and selling expenses of Tk.5000. B's commission was 10%. On this date B remitted to A the net amount due to him. On 31st May 2018, B sold the balance stock for Tk.40,000 after incurring expenses of Tk.5,000. He remitted Tk.28,000 to A, the balance being treated as commission earned by him. Pass journal entries in the books of A
Financial Statement Analysis and Preparation
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