Professional Documents
Culture Documents
FINAL ACCOUNTS
Furniture
18,000 6,200
Less: Depreciation 1,800
Closing stock
Balance as per T/B 60,000 75,000
Add: Appreciation 15,000
3,27,702 3,27,702
Manufacturing Account
Some films like to first ascertain the cost of goods manufactured by them during the year distinctly before
they prepare the trading sccount and establish the gross profit. This account is called the Manufacturing Account and
is prepared in addition to be Trading Account. It has the undermentioned characteristics:
1. Since the purpose of preparation of this account' is to ascertain the cost of goods produced during the year,
the
448
51,375 51,375
31,000 31,000
449
Bills Receivable Account
Date Particulars Amount Date Particulars Amount
Rs. Rs.
1994 To Kanpur Agent: 15,000 1994 By Bank Account By
July 1 July 1 Discount A/c
15,000
Discount Account
Date Particulars Amount Date Particulars Amount
Rs. Rs.
1994 To Bills Receivable 300 1994 By Profit & Loss Account 300
July 1 Account Dec. 31
300 300
450
XXXXXXX
451
XXXXXXXXX
452
A TEXTBOOK OF ACCOUNTANCY
Working Notes:
Commission has been calculated as follows:
3\4 th of invoice of goods sent (Invoice value) 10%
Commission on this figure Excess value realized:
Rs.19,500 Rs.15,000 = 4,500 20%
20% of excess value realized
15,000
1,500
900
2,400
Stock has been valued as: 1\4 th of goods left unsold 1\4th of Expenses
Seema is not a del credere agent, hence the bad debt of Rs. 400 has to be borve by Arun.
Illustration No. 12
Ram & Co. of Delhi sent on consignment to their agent in Calcutta goods invoiced at Rs. 45,000, this being selling
price of the consignment obtained by adding 30% to the cost price to cover expenses, profit and selling commission.
At the end of six months the agent remitted the sum of Rs. 12,000 made as under:
13,000
1,000 12,000
The agent reported the goods of the invoice value of Rs, 600 have been totally damaged in transit, and he
sent a list of stock still held amounting TO Rs. 31.400.
Give the journal eateries necessary t record these details in the books of consignor, and also the ledger
accounts.
453
Solution
IN THE BOOKS OF RAM & CO Consignor CONSIGNMENT ACCOUNT