M of Mumbai sent on consjgnment, goods valued Rs.4,00,000 to A of Agra on 1st March, 2020. He incurred the expenditure of Rs.48,000 on freight and insurance. M’s accounting year closes on 31st December. A was entitled to a commission of 5% on gross sales plus a del-credere commission of 3%. A took delivery of the consignment by incurring expenses of 12,000 for the goods consigned.
On 31112/2020, A informed on phone that he had sold all the goods for 6,00,000 by incurring selling expenses of 8,000. He further informed that only 5,92,000 had been realized and rest was considered irrecoverable, and would be sending the cheque in a day or so for the amount due along with the accounts sale.
On 5/1/202, M received the cheque for the amount due from A and incurred bank charges of Rs.1,040 for collecting the cheque. The amount was credited by the bank on 9/112021.
Write up the consignment account finding out the profit/loss on the consignment and A’s account in the books of M.
[2022 May – 10 Marks ]