Bhaskar of Rajahmundry consign 500 radio sets each at ₹ 600 to Prasad of Tenali on consignment. Bhaskar paid ₹ 12,000 as freight and insurance in transit. Bhaskar drawn a bill on Prasad for 3 months for ₹ 1,00,000.
Prasad send account sales which shows the following particulars.

Question

Bhaskar of Rajahmundry consign 500 radio sets each at ₹ 600 to Prasad of Tenali on consignment. Bhaskar paid ₹ 12,000 as freight and insurance in transit. Bhaskar drawn a bill on Prasad for 3 months for ₹ 1,00,000.
Prasad send account sales which shows the following particulars.
Gross sales are ₹ 4,50,000.
Unloading and godown rent ₹ 10,000.
Commission 5% on Gross Sales.
Prasad send a Bank draft for the balance due to Bhaskar.
You are required to prepare necessary Ledger accounts in the Books of consignor.

Accepted Answer

>

> [!TLDR]
> Cost of goods sent 500 × ₹600 = ₹3,00,000. Consignor's freight & insurance ₹12,000. Consignee's expenses ₹10,000 and 5% commission on ₹4,50,000 = ₹22,500. Sales ₹4,50,000, all stock sold (no closing stock). Consignment profit = 4,50,000 − (3,00,000 + 12,000 + 10,000 + 22,500) = ₹1,05,500. Prasad settles by the ₹1,00,000 bill plus a bank draft of ₹3,17,500.
>
> This is a typical AP Inter 2nd-year (Commerce) consignment question; the consignor's ledger below follows the NCERT/CBSE-aligned commerce method.
>
> **Consignment to Tenali Account** (in the books of Bhaskar, the consignor)
>
> | Particulars | ₹ | Particulars | ₹ |
> | --- | --- | --- | --- |
> | To Goods Sent on Consignment (500 × 600) | 3,00,000 | By Prasad A/c — Sales | 4,50,000 |
> | To Bank — Freight & Insurance | 12,000 | | |
> | To Prasad A/c — Unloading & Godown Rent | 10,000 | | |
> | To Prasad A/c — Commission (5% of 4,50,000) | 22,500 | | |
> | To Profit transferred to P&L A/c | 1,05,500 | | |
> | **Total** | **4,50,000** | **Total** | **4,50,000** |
>
> **Prasad's Account** (consignee's personal account)
>
> | Particulars | ₹ | Particulars | ₹ |
> | --- | --- | --- | --- |
> | To Consignment A/c — Sales | 4,50,000 | By Consignment A/c — Unloading & Godown Rent | 10,000 |
> | | | By Consignment A/c — Commission | 22,500 |
> | | | By Bills Receivable A/c (bill accepted) | 1,00,000 | …

Particulars	₹	Particulars	₹
To Goods Sent on Consignment (500 × 600)	3,00,000	By Prasad A/c — Sales	4,50,000
To Bank — Freight & Insurance	12,000
To Prasad A/c — Unloading & Godown Rent	10,000
To Prasad A/c — Commission (5% of 4,50,000)	22,500
To Profit transferred to P&L A/c	1,05,500
Total	4,50,000	Total	4,50,000

Particulars	₹	Particulars	₹
To Consignment A/c — Sales	4,50,000	By Consignment A/c — Unloading & Godown Rent	10,000
		By Consignment A/c — Commission	22,500
		By Bills Receivable A/c (bill accepted)	1,00,000

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