Reference no: EM13481638
Q NO.1: On 1st January 2009 White of Quetta consignedto Green of Karachi goods for sale. Green is entitled to commissionof 5% on invoice price and 15% of any surplus price realized Goodscosting Rs.18000 were consigned to Green of Karachi at invoiceprice of Rs.22500. The expenses of consignment amounted to Rs.1800were incurred by White on 1st March an Account Sales wasreceived from Green showing that he had affected sale of Rs.18500in respect of 75% of the quantity of goods consigned to him. Hisactual out of pocket expenses were freight in Rs.180, fireinsurance Rs90 and other expenses Rs.230, Green accepted a billdrawn by White for Rs.10000 and remitted the balance in cash.
Required: Prepare general entries in books of consigner and consignee and also prepare the consignment account.
Q NO.2: Moti Traders has a branch at Islamabad. Goods areinvoiced to the branch at cost plus 20%. The expenses of the Branchare paid from Head Office and the branch keeps a sales journal anddebtor's ledger only. On the basis of the followinginformation prepare Branch Account, as it would appear in the booksof Head Office.
Opening stock (at invoiceprice).........................Rs12,000
Closing Stock (at invoiceprice)........................... 9, 000
Credit Sales................................................. 20, 500
CashSales................................................... 8, 750
Receipt fromdebtors....................................... 18,950
Sundry Debtors on 31st March2009...................... 4, 580
Goods Received from HeadOffice....................... 15, 000
Goods in transit from head office on 31st March2009.... 1, 800
Expenses paid by Head Office for the branch.............. 5, 200
Q NO.3: Make journal entries to record the followingtransactions:
Issued on par 2500, 5% preference shares of Rs.10 each.
Issued 500 ordinary shares of Rs.10 each at Rs.12 per share,all amount received in cash.
Purchased building costing Rs.150000 and issued 10000, 5%preference shares of Rs.10 (per value) each for fullconsideration.
Issued 5000 ordinary shares of Rs.10 each to promoters asremuneration for their services.