M/S Naeem Motors sent 1000 cars to Haseeb on consignment. The cost of each car was (Rs. Use your 4128 but was invoiced to Haseeb at cost plus 25%. The expenses of M/S Naeem Motors were: Freight Rs. 7,000; Insurance Rs. 3,000 During transit one car was destroy and the insurance company admitted Rs. 9,000 towards that Claim. Haseeb sold 70 cars at Rs. 15,000 each and paid for storage and insurance Rs. 3,400. Haseeb then accepted bill for Rs. 90,000 at 3 months drawn by M/S Naeem Motors which they discounted immediately with their banker at 6% p.a. It was agreed that Haseeb is to get 5% commission. Pass Journal entries in the book of consignor and consignee and make necessary accounts in both books.

M/S Naeem Motors sent 1000 cars to Haseeb on consignment. The cost of each car was (Rs. Use your 4128 but was invoiced to Haseeb at cost plus 25%. The expenses of M/S Naeem Motors were: Freight Rs. 7,000; Insurance Rs. 3,000 During transit one car was destroy and the insurance company admitted Rs. 9,000 towards that Claim. Haseeb sold 70 cars at Rs. 15,000 each and paid for storage and insurance Rs. 3,400. Haseeb then accepted bill for Rs. 90,000 at 3 months drawn by M/S Naeem Motors which they discounted immediately with their banker at 6% p.a. It was agreed that Haseeb is to get 5% commission. Pass Journal entries in the book of consignor and consignee and make necessary accounts in both books.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5Q: For each of the following transactions, state whether the cost would be capitalized (C) or recorded...

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