CONSIGNMENT ACCOUNT


PROBLEM - 1

X, whose accounting year ends on 31st May each year, consigned 100 cases of medicine costing Tk. 3,000 each to Y of Rajshahi on 1.4.2006.

He paid Tk. 5,000 towards freight and insurance.

15 cases were damaged in transit and on 30.5.2006 the consignor received Tk. 10,000 on account of the damaged cases from the insurance company.

Y took delivery of the goods on 10.4.2006 and immediately accepted a bill drawn on him for Tk. 200,000 for 60 days.

On 30.5.2006, the consignee reported that:
(i) 75 cases were sold at Tk. 4,500 per case; and
(ii) He incurred the following expenses: Godown rent Tk. 4,000; Clearing charges Tk. 8,500; Carriage outwards Tk. 3,000.
(iii) He is entitled to a Commission of 10% on the sale proceeds.

Y remits the balance by bank draft on 30.5.2006.

Requirements:
1. Give the journal entries in the books of X and Y.
2. Show the ledger accounts in the books of X and the personal account of X in the books of Y.