Accounting for Special Transactions – Consignment 0 Accounting for Special Transactions - Consignment 1 / 30 Q.30 discount charges of Rs.1,000 on discounting a bill receivable accepted by the consignee are debited to consignee account consignment account consignor account profit & loss account 2 / 30 Q.29 consignee account is prepared in the books of consignor consignee third party None of these 3 / 30 Q.28 in the consignment the goods are dispatched on the basis that the goods will be sold on the behalf of ,at the expenses & the risk of consignor consignee employer None of these 4 / 30 Q.27 Which of the following is true ? Only one venture bears the risk Only one venture can sell the goods Only one venture can purchase the goods In joint venture , provision of partnership act applies 5 / 30 Q.26 If Del-creder's commission is allowed by consignor to consignee the bad debt treatment will be (in the books of consignor ) will not be recorded in the consignor's books bad debts will be debited in consignor's account bad debts will be charged to General P/L account bad debts will be recovered along with credit Sales 6 / 30 Q.25 X of Kolkata sends out 1,000 boxes to Y of Delhi costing Rs.20 each . Consignor's expenses Rs.2,000.4/5th of boxes were boxes were sold at Rs.25 each. The profit on consignment will be Rs.2,400 Rs.2,000 Rs.3,000 Rs.3,500 7 / 30 Q.24 X of Kolkata sends out 400 bags to Y of Delhi costings Rs.200 each. Consignor's expenses Rs.2,000.Y's expenses non-selling Rs.2,000 , selling Rs.1,000.300 bags were sold by Y .The Value of consignment stock will be : Rs.20,400 Rs.20,200 Rs.20,000 Rs.21,000 8 / 30 Q.23 X of Kolkata sends out goods costings Rs.1,00,000 to Y of Delhi 3/5 the of the goods were sold by consignee for Rs.70,000 . Commission 2% on Sales plus 20% of gross Sales less all commission exceeds cost price .The amount commission will be: RS.2,833 Rs.2,900 Rs.3,000 Rs.2,800 9 / 30 Q.22 Rabin consigned goods for the value of Rs.8,250 to Raj of Kanpur paid freight etc.of Rs. 650 and insurance Rs.400.Drew a bill on Raj at 3 mts after date for Rs.3,000 as an advance against consignment , and discounted the bill for Rs.2,960.Received Account Sales from Raj showing that part of the goods had realized gross Rs.8,350 and that his expenses and commission amounted to rs 870. The stock unsold was valued at Rs 2,750.Consignee wants to remit a draft for the amount of draft will be ; Rs.2,130 Rs.4,480 Rs.5,130 Rs.2,800 10 / 30 Q.21 X sent out 1,000 units to y @ Rs.125 each .The proforma invoice was made by adding 25% to cost , X expenses Rs.20,000 , X drew upon Y a bill as a security for an amount equivalent to 60% of the invoice value for 3 months .the acceptance was discounted @ 18% p.a. , 20% of the goods were still in transit , Y incurred Rs.4,000 towards transportation upto godown & Rs.5,000 as insurance premium etc. , 60% of the goods received was sold by at 20% above the invoice price.Half of the sales were on credit .one credit customer to whom 100 units were sold became insolvent & paid only 60 paise in a rupee , 40% of the balance goods,were destroyed in y's godown & insurance co.paid Rs.15,000 .Rate of commission -normal commission @ 8% on sales at invoice price , del-credere commission @ 2% on sales at a invoice price .extra commission @ 30 % of the surplus over invioce value +20% of gross sales less all commission exceeds invoice value , net balance after adjusting proportionate security was remitted .The cost of goods still in transit is Rs.25,000 Rs.20,000 Rs.29,000 Rs.24,000 11 / 30 Q.20 X sent out goods costing Rs.4,00,000 to Y .consignor's expenses Rs.10,000. consignee's expenses in relation to sales Rs.4,000 .4/5th of the goods were sold at 20% above cost .the profit on consignment will be Rs.52,000 Rs.64,000 Rs.52,400 Rs.(12,000) 12 / 30 Q.19 X sent out goods at invoice value of Rs.2,50,000 to Y at 25% profit on cost price .consignor's exp.Rs.25,000 , consignee's expenses -non-recurring Rs.17,500, selling expenses Rs.2,500 . 1/10th of the goods were lost in transit .9/10th of the balance goods were sold .the cost of consignment stock will be Rs.2,20,000 Rs.1,98,000 Rs.2,47,500 Rs.2,75,000 13 / 30 Q.18 X sent out goods costing Rs.1,00,000 to Y at a cost + 25% .3/5th of the goods were sold by consignee at Rs.85,000 .the rate of commission is 2% on sales +20% of gross sales less all commission exceeds invoice value .the amount of commission will be Rs.3,083 Rs.2,833 Rs.2,500 Rs.4,750 14 / 30 Q.17 which of the following is correct Consignee will pass a journal entry in his books at the time of receiving goods from consignor Consignee will not pass any journal entry in his books at the time of receiving goods from consignor The ownership of goods will be transferred to consignee at the time of receiving the goods Consignee will treat consignor as creditor at the time of receiving goods 15 / 30 Q.16 Stock lost due to fire, theft, flood etc is normal loss abnormal loss normal gain abnormal gain 16 / 30 Q.15 with reference to consignment which of the following is correct sales account is sent by the consignor sales account is sent by the consignee an account sales is sent by the consignor an account sales is sent by the consignee 17 / 30 Q.14 R of Kolkata sends out goods of Rs.3,00,000 to Y of Delhi at cost + 33 1/3 % .The consigner asked consignee to pay an advance for an amount equivalent to 60% of the Sales value The. amount of advance will be Rs.2,40,000 Rs.2,00,000 Rs.3,00,000 none 18 / 30 Q.13 Consignment account is Real account personal account nominal account none 19 / 30 Q.12 X of Kolkata sends out goods so as to show a profit of 20% p on IP . 1/10th of the goods were lost in transit. The cost price of goods lost is Rs.20,000. the invoice value of goods sent out is Rs.2,50,000 Rs.2,00,000 Rs.2,25,000 Rs.2,40,000 20 / 30 Q.11 X of Kolkata sent goods of the invoice value Rs. 2,00,000 to Y of Delhi at cost + 25% .The amount of loading will be Rs.50,000 Rs.40,000 Rs.30,000 Rs.60,000 21 / 30 Q.9 The consignment accounting is made on the following basis Accrual realization cash basis 22 / 30 Q.9 The consignment accounting is made on the following basis Accrual realization cash basis None of these 23 / 30 Q.8 Goods sent on consignment invoice value Rs. 2,00,000 at cost + 33 1/3 % 1/5 the of the goods were lost in transit .Insurance claim received Rs.10,000.The amount of abnormal loss to be transferred to General P/L Rs.30,000 Rs.20,000 Rs.35,000 Rs.25,000. 24 / 30 Q.7 X of Kolkata sends out 1,000 bags to Y of Delhi costings Rs.2000 each.600 bags were sold at 10% above cost price. Sale value will be Rs.13,20,000 Rs.13,00,000 Rs.12,00,000 Rs.13,50,000 25 / 30 Q.6 X sent out 1,000 units to y @ Rs.125 each .The proforma invoice was made by adding 25% to cost , X expenses Rs.20,000 , X drew upon Y a bill as a security for an amount equivalent to 60% of the invoice value for 3 months .the acceptance was discouned @ 18% p.a. , 20% of the goods were still in transit , Y incurred Rs.4,000 towards transportation upto godown & Rs.5,000 as insurance premium etc. , 60% of the goods received was sold by at 20% above the invoice price.Half of the sales were on credit .one credit customer to whom 100 units were sold became insolvent & paid only 60 paise in a rupee , 40% of the balance goods,were destroyed in y's godown & insurance co.paid Rs.15,000 .Rate of commission -normal commission @ 8% on sales at invoice price , del-credere commission @ 2% on sales at a invoice price .extra commission @ 30 % of the surplus over invioce value +20% of gross sales less all commission exceeds invoice value , net balance after adjusting proportionate security was remitted .The invoice value of goods sold is Rs.1,00,000 Rs.1,20,000 Rs.60,000 Rs.75,000 26 / 30 Q.5 X sent out 1,000 boxes costing 100 each at a profit of 1/6th on invoice price. Goods sent out on consignment to be credited in general trading will be Rs.1,00,000 Rs.1,20,000 Rs.1,20,000 None of these 27 / 30 Q.4 X sent out certain goods costing Rs.90,000 to Y of Delhi at a profit of 25% on Invoice Price goods were lost in transit .2/3rd of the goods received are sold at 20% above IP .1/3rd of the sale are on credit The amount of credit sale will be Rs.28,800 Rs.24,000 Rs.27,000 None of these 28 / 30 Q.3 If del-credere commission is not allowed for bad debts , consignee will debit the bad debts amount to Commission earned account Consignor account debtor account general profit & loss account 29 / 30 Q.2 Goods sent on consignment Rs.2,00,000.Cash Sales Rs.1,00,000.Consignor's expenses Rs.5,000. consignee expenses Rs.2,000. credit Sales Rs.1,50,000.Commission payable to consignee Rs.3,000.Del =credere commission Rs.2,000 .The amount irrecoverable from customer Rs.2,000 .What will be the profit on consignment Rs.38,000 Rs.40,000 Rs.36,000 Rs.43,000 30 / 30 Q.1 X of Kolkata sends out certain goods to Y at cost + 25% .Invoice value of goods sends out Rs.2,00,000. 4/5th of the goods were sold by consignee at Rs. 1,76,000 .Commission 2% upto invoice value and 10% of any surplus above invoice value .The amount of commission be Rs.4,800 Rs.5,200 Rs.3,200 Rs.1,600 Your score is LinkedIn Facebook Twitter VKontakte