LOSS Details

Normal LOSS of Goods: On 1st Jan. 2005, Mohsin Coal Co. of Quetta consigned to Rftinzan Ltd. of Lahore 10,000 tons of coal. The cost of coal was Rs. 40 per ton and railway charges were Rs. 10 per ton. On 25th Feb., an Account sales was received From Ram/an Ltd. showing that 5000 tons of coal sold («; Rs. 80 per ton; sales expenses Rs. 4000, Insurance Rs.
1000, commission 5 % on sales. The agent enclosed a bill for the sales proceeds less expenses and reported a shortage of 100 tons on the whole consignment. Show the consignment account In books of Mohsin Coal Co.
Ans: [Profit on consignment Rs. 122474.75}
13. Abnormal Loss: M/s Naeem Motors sent 100 cars to Haseeb on consignment. The cost of each car was Rs. 12,000. The expenses of M/s Naeem Motors were:
Freight Rs. 7,000, Insurance Rs. 3,000.
During transit one car was destroyed and the insurance company admitted Rs. 9000 towards that claim.
Haseeb sold 7 cars at Rs. 15,000 each and paid for storage and insurance Rs. 3,400. Haseeb then accepted a bill for Rs. 90,000, at 3 months drawn by M/s Naeem Motors which they discounted immediately with their bank at 6 % p.a. It was agreed that Haseeb is to get 5 % commission.
Give the consignment account In the books of M/s Naeem Motors. Ans: [Profit on consignment Rs. II650, Abnormal Loss Rs. 3100]
14. Bilal of Lahore consigned 100 cases of candles to Abdullah of Mardan which cost him Rs. 50 per case. He incurred the following costs: packing Rs. 100; carriage Rs. 150 and Railway freight Rs. 200. Some of the cases were damaged in transit and Abdullah took delivery of 90 cases only. Abdullah spent Rs. 50 for cartage and Rs. 300 for godown rent and sold the consignment at Rs. 60 per case. He Sent the net amount to Bilal after deducting his expenses and commission at the rate of 5% on the sale proceeds together with his Account Sales. Bilal also received Rs. 300 from the Railway for damages. Show how the consignment account would appear in books of Bilal.
Ans: [Loss on consignment Rs. 125, Abnormal Loss Rs. 245]