ASSIGNMENTS- SET 2 FOR TUESDAY APRIL 4

No 4- Refer to ex 5 page 152. Data as is but change sales price to P10,500 based on a markup of 75% of
cost. Change the cost price. Requirements as is.

a. Account Sales
FM INC.
Location
ACCOUNT SALES
Sales for the account and risk No.1
of: Date: March xx, yyyy
FM INC.
Location
Sales (60 x 10,500) P 630,000
Less charges:
Delivery and
Installation cost
(60 x 200) 12,000
Freight 1,350
Commission
(630,000 x .15) 94,500 (107,850)
For Remittance P 522,150
Less: Advances (60% (216,000)
based on cost)
Balance P 306,150
Less: Check Enclosed (306,150)
On Hand 135 sets

b. Analysis of Charges
Total Sets Returned Sets Unsold Sets Sold
Charges to Consignor
Cost of Merchandise 1,200,000 30,000 810,000 360,000
Shipping Cost 100,000 2,500 67,500 30,000

Charges to Consignee
Delivery and Installation 12,000 12,000
Freight On Returns 1,350 1,350
Commission 94,500 94,500
 Total 1,407,850 33,850 877,500 496,500

c. Entries in the books of consignor and consignee

Books of FM Inc. Books of Television Inc.
Particulars Debit Credit Particulars Debit Credit
Received 200 TV sets to be sold at P 10,500, 75% markup of cost, Consignment Out – FM Inc. 1,200,000
15% commission,
Merchandise shipment on 1,200,000
consignment

Advances to Consignor 216,000 Consignment Out – FM Inc. 100,000

Cash 216,000 Cash 100,000
To record advances
Cash 216,000
Cash 630,000 Advances from Consignee 216,000
Consignment In – Television 630,000
Inc.
Sold 60 units of
television sets

Consignment In – Television Inc. 12,000

Cash 12,000
Paid for delivery and
installation

Returned 5 defective TV sets. Merchandise Shipment on consignment 30,000

Consignment Out – FM Inc. 30,000

Consignment In – Television Inc. 1,350

Cash 1,350
Paid for freight on
returns

Consignment In – Television Inc. 94,500

Consignment Income 94,500
To record Commission

Consignment In – Television Inc. 306,150 Cash 306,150

Cash 306,150 Consignment Out – FM Inc. 107,850
To record remittance Advances from Consignee 216,000
Consignment Out – FM Inc. 630,000

Consignment Out 129,650

Consignment Profit 129,650

Sales 630,000
Less charges related to sets sold 496,500
 Expenses related to returns 3,850 500,350
Consignment Profit 129,650

No 5- Refer to ex 6 page 152-153. Change the no. of units sold to 6 and the commission of 20% to P4,800

Required:
a. Compute for remittance: P 17,100
NIPPON INC.
Location
ACCOUNT SALES
Sales for the account and risk of: No.1
HI-TECH COMPANY Date: March 1, 2015
Location
Sales (4,800/.20) 24,000
Less charges:
Freight on
Receipt of 800
consignment 4,800
20% Commission
Delivery and 600 (6,200)
Installation
For Remittance 17,800
Less: Partial Remittance (16,300)
Balance 1,500
On Hand

b. Make entries in the books of consignee.

Books of Nippon Inc.
Particulars Debit Credit
Received 10 radio sets, 20% commission

Consignment In – Lovely Company 200

Cash 200
 To record payment of freight

Cash 24,000
Consignment In- Lovely Company 24,000
To record sales of merchandise

Consignment In - Hi-Tech Company 400

Cash 400
Paid delivery and installation costs

Consignment In – Lovely Company 4,800

Consignment Income 4,800
To record Commission

Consignment In – Lovely Company 1,500

Due to Consignor 1,500
To record balance still due.

c. Give the balance of the consignment out account and make entries in the books of the
consignor.

Total Sets Unsold Sets Sold

Charges to Consignor
Cost of Merchandise 15,000 6,000 9,000
Shipping Cost 1,200 480 720

Charges to Consignee
Freight on Receipt of 800 320 480
consignment
20% Commission 4,800 4,800
Delivery and Installation 600 600
Balance still due 1,500 1,500
Total 23,900 6,800 17,100

Consignment Out – Nippon Inc.

Cost of consigned goods 15,000 Sales 24,000
Cartage 1,200
Charges of FM:
Consignee expenses 7,700
including Commission
23,900
Profit (17,100 – 24,000) 6,900
30,800 24,000
Balance – 6,800

Books of Lovely Company

Particulars Debit Credit
Consignment Out – Nippon Inc. 15,000
 Merchandise shipment on consignment 15,000

Consignment Out – Nippon Inc. 1,200

Cash 1,200

Cash 16,300
Consignment Out – Nippon Inc. 6,200
Due from Consignee 1,500
Consignment Out – FM Inc. 24,000

Consignment Out – Nippon Inc. 6,900

Consignment Profit 6,900

No 6- Refer to ex 7
Required:
a. Account books.
b. Compute for analysis of charges and consignment profit make entries in consignor’s book

THAT IN ALL THINGS GOD MAY BE

GLORIFIED