Consignment Accounting Solution

In this article, we will do the Consignment Accounting Solution of BCOC-131 Financial Accounting Assignment of IGNOU for the year 2021-22.

Problem Given:

Oswal Mills Barnala consigned 5,000 kg. of vanaspati ghee of Rajendra Dealers of Panipat. Each kg. Ghee costs ₹ 8. Oswal Mills paid ₹ 50 for carriage, ₹ 250 for freight and 200 for insurance in transit. During transit 500 kg. Ghee was accidentally destroyed for which insurance company paid directly to the consignor ₹ 2,500 in full settlement of the claim. After 3 months from the date of consignment of goods to Panipat, Rajendra Dealers reported that 1,500 kg. Ghee was sold at ₹ 9.50 per kg. The expenses were: On Godown Rent ₹ 500, On Salesman Salary ₹ 700. Rajendra Dealers are entitled to a commission of 5% on sales. Due to leakage, Rajendra dealers also reported a loss of 20 kg. Ghee. Prepare Consignment Account and Abnormal Loss Account in the books of the Consignor.

Solution:

In the books of Oswal Mills (Consignor)