Vaishnavi of Hyderabad consigned goods valued at Rs. 30,000 to Jahnavi of Delhi. Vaishnavi paid cartage and other expenses Rs. 2,000. Jahnavi sent the account sales with the following information:
(i) 50% of the goods sold for Rs. 22,000.
(ii) Jahnavi incurred expenses amounting

Question

Vaishnavi of Hyderabad consigned goods valued at Rs. 30,000 to Jahnavi of Delhi. Vaishnavi paid cartage and other expenses Rs. 2,000. Jahnavi sent the account sales with the following information:
(i) 50% of the goods sold for Rs. 22,000.
(ii) Jahnavi incurred expenses amounting to Rs. 1200.
(iii) Jahnavi is entitled to receive commission @ 5% on sales.
A bank draft was enclosed for the balance. Prepare the necessary ledger accounts in the books of Vaishnavi.

Accepted Answer

>

> [!TLDR]
> Vaishnavi (consignor) sends goods worth Rs. 30,000 and spends Rs. 2,000. Jahnavi sells half for Rs. 22,000, spends Rs. 1,200 and charges 5% commission (Rs. 1,100). Unsold stock (50%) is valued at Rs. 16,000 (Rs. 15,000 cost + Rs. 1,000 proportionate consignor expenses). The Consignment Account shows a profit of Rs. 3,700 and Jahnavi remits a bank draft of Rs. 19,700. This is a TS Intermediate 2nd-year Accountancy consignment problem solved in the consignor's books.
>
> **Working — valuation of unsold stock**
>
> Only 50% of the goods are sold, so 50% remain. Vaishnavi's cartage and other expenses of Rs. 2,000 are non-recurring (incurred to get goods to the consignee), so a proportionate part is added to stock. Jahnavi's expenses of Rs. 1,200 are treated as recurring selling expenses (nothing in the account-sales suggests they are landing/unloading charges), so they are not added to stock.
>
> - Cost of unsold goods = 50% of 30,000 = Rs. 15,000
> - Add: proportionate consignor expenses = 50% of 2,000 = Rs. 1,000
> - **Value of closing stock = Rs. 16,000**
>
> **Consignment to Delhi Account (in the books of Vaishnavi)**
>
> | Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
> |---|---|---|---|
> | To Goods sent on consignment | 30,000 | By Jahnavi — Sales | 22,000 |
> | To Bank — Vaishnavi's expenses | 2,000 | By Stock on consignment c/d | 16,000 |
> | To Jahnavi — Expenses | 1,200 | | |
> | To Jahnavi — Commission (5% of 22,000) | 1,100 | | |
> | To Profit transferred to P&L A/c | 3,700 | | |
> | **Total** | **38,000** | **Total** | **38,000** |
>
> **Jahnavi's Account (Consignee)**
>
> | Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
> |---|---|---|---| …

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Goods sent on consignment	50,000	By Shivaji (Sales)	48,000
To Bank (consignor's expenses)	2,400	By Consignment Stock c/d	13,100
To Shivaji (consignee's expenses)	1,200
To Shivaji (commission 5% of 48,000)	2,400
To Profit transferred to P and L A/c	5,100
	61,100		61,100

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Goods Sent on Consignment A/c	3,00,000	By Prasad A/c (Gross Sales)	4,50,000
To Bank A/c (freight and insurance)	12,000
To Prasad A/c (unloading and godown rent)	10,000
To Prasad A/c (commission 5% of 4,50,000)	22,500
To Profit transferred to Profit and Loss A/c	1,05,500
Total	4,50,000	Total	4,50,000

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Consignment A/c (Gross Sales)	4,50,000	By Bills Receivable A/c (bill accepted)	1,00,000
		By Consignment A/c (unloading and godown rent)	10,000

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Goods Sent on Consignment A/c	60,000	By Karan's A/c (Sales)	50,000
To Bank A/c (Ravi's expenses)	4,000	By Stock on Consignment A/c (c/d)	32,000
To Karan's A/c (expenses)	3,000
To Karan's A/c (commission 6% of 50,000)	3,000
To Profit transferred to P&L A/c	12,000
Total	82,000	Total	82,000

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Goods Sent on Consignment A/c	20,000	By Arjun A/c (Sales)	30,000
To Cash A/c (freight 800 + insurance 700)	1,500
To Arjun A/c (sales expenses)	750
To Arjun A/c (commission 5% of 30,000)	1,500
To Profit transferred to Profit and Loss A/c	6,250
Total	30,000	Total	30,000

Q.Vaishnavi of Hyderabad consigned goods valued at Rs. 30,000 to Jahnavi of Delhi. Vaishnavi paid cartage and other expenses Rs. 2,000. Jahnavi sent the account sales with the following information:

Concept understanding — Consignment Account and Related Ledger Accounts in the Consignor's Books

Working — Valuation of unsold stock

Consignment to Karimnagar Account

Karan's Account (Consignee)

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Goods sent on consignment	30,000	By Jahnavi — Sales	22,000
To Bank — Vaishnavi's expenses	2,000	By Stock on consignment c/d	16,000
To Jahnavi — Expenses	1,200
To Jahnavi — Commission (5% of 22,000)	1,100
To Profit transferred to P&L A/c	3,700
Total	38,000	Total	38,000

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Goods sent on consignment	10,000	By Mehta and Co. (Sales)	18,500
To Bank (consignor's expenses)	500
To Mehta and Co. (carriage 600 + other 400)	1,000
To Mehta and Co. (commission 5% of 18,500)	925
To Profit transferred to P and L A/c	6,075
	18,500		18,500

Dr — Particulars	Amount (₹)	Cr — Particulars	Amount (₹)
To Goods Sent on Consignment (100 x 600)	60,000	By Nikhil (Sales 80 x 800)	64,000
To Bank (Insurance 1,000 + Freight 1,000)	2,000	By Consignment Stock c/d	12,400
To Nikhil (Selling Exp. 500 + Commission 6,400)	6,900
To Profit transferred to P&L A/c	7,500
Total	76,400	Total	76,400

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Goods sent on consignment (200 × 400)	80,000	By Rama Brothers — Sales (100 × 520)	52,000
To Cash — Freight & Insurance	5,000	By Consignment Stock A/c	42,500
To Rama Brothers — Expenses (2,400 + 1,300)	3,700
To Rama Brothers — Commission (10% of 52,000)	5,200
To Profit transferred to P&L A/c	600
Total	94,500	Total	94,500

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Consignment A/c	42,500	By Balance c/d	42,500
Total	42,500	Total	42,500

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Consignment A/c (sales)	52,000	By Bills Receivable (bill accepted)	50,000
To Balance c/d (due to Rama Brothers)	6,900	By Consignment A/c (expenses)	3,700
		By Consignment A/c (commission)	5,200
Total	58,900	Total	58,900
…

Q.Vaishnavi of Hyderabad consigned goods valued at Rs. 30,000 to Jahnavi of Delhi. Vaishnavi paid cartage and other expenses Rs. 2,000. Jahnavi sent the account sales with the following information:

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