67175 bos54090-cp6u3 Ca foundation paper 1 49 ACCOUNTING FOR SPECIAL TRANSACTIONS 6 UNIT 3

Acceptance of the intrusion of the UNSCOM’s inspectors on the part of the Iraqi regime was gradual coming. Between 1991 and 1997 its director was Rolf Ekéus; from 1997 to 1999 its director was Richard Butler. Between 1991 and 1995, UN inspectors uncovered an enormous program to develop organic and nuclear weapons. These reports, nevertheless, have been discovered to be incomplete and poor, and at the identical time UN inspectors have been subjected to harassment and threats on the part of the Iraqi regime. Normally, the overall agent is a enterprise agent, however there are circumstances beneath which a person may appoint a general agent for private functions.

If del-credere commission is not allowed for bad debt, consignee will debit the bad debt amount to _______________. Consignment indicates that one individual/business sends items to another individual/business to sell on account of the latter. The owner of the goods retains ownership; they maintain the right to the things. A consignment arrangement is used to assist the delivery or transportation of items. Consignments may benefit both the consignor and consignee. The consignor gains from business growth, while the consignee gains commissions and bonuses without making any investment.

MEANING OF CONSIGNMENT ACCOUNT

Somesh of Calcutta consigned 100 cases of candles to Sailesh of Bankura. He incurred the following costs packing ₹ 40 carriage ₹ 20 and Railway Freight ₹ 40. Some of the cases were damaged in transit and Sailesh took delivery of 90 cases only. He spent ₹ 10 for carriage and₹ 40 for godown rent and sold consignment at₹ 35 per case. He sent the net amount to Somesh after deducting his expenses and commission at the rate of 5 per cent on the sale proceeds together with his Account sales. Somesh also received ₹ 180 from the Railway as damages.

Naturally, an organization that pays commissions would gladly incur high commission costs in trade for strong income performance. However, the uncertainty with fee pay can lead to finances challenges, especially should you sell on account to buyers. A monetary advantage with commissions is that you know you only pay on gross sales conversions. UnitedHealthcare makes use of base commissions as the first means of compensating producers for selling, renewing and servicing our merchandise. Commissions on medical cases having 50 or fewer eligible employees are paid on a regular basis in accordance with published schedules. Base commissions are built into the premiums or fees paid by our clients, and are paid as a percentage of the premium or set amount per worker.

How to calculate commission overriding commission and delcredere commission give some examples ?

The agent is a commission agent or C&F agent is determined on the basis of whether or not the agent has the authority to pass or receive the title of the goods on behalf of the principal. If the agent has such right then such agent is a C&F agent. The disclosure or non-disclosure of the name of the principal to the final buyer is immaterial. For example – An artist Mr A gives his painting to Mr B for auction.

In this method, consignor intimates to consignee and accounts in its books, the goods at cost. It is a very normal accounting and does not require any special adjustment. Prepare Consignment account showing profit or loss on consignment, if Siraj is entitled to 5% commission on sales. Mr. R noticed that 10 units were damaged on account of bad packing and he could sell them only for ₹ 80 per unit after 31st March.

Consignment Accounting – CA Foundation Accounts Study Material

The goods are sent by the company to such C&F agent on issuing an invoice and such agent distributes goods to other retailers by issuing invoices of their own firm’s name. During the year Reema consigned to Sunita goods worth Rs. 3,60,000, the invoice price of which was Rs. 5,00,000 this includes freight. Show the consignment del-credre commission and over-riding commission. account and Suresh’s account in the books of Dinesh. 3,000 meters were sold at Delhi at Rs. 30 per meter less Rs. 3,000 for expenses and commission. Owing to fall in market price, the stock of cloth in hand is to be reduced by 10 per cent. The principals to draw on the agent a 30 days bill for 80% of the invoice price.

As a particular agent, Alberta had authority solely to find a purchaser; she had no authority to sign the contract. We are agents for foreign company in India and book contracts with Govt of india in foreign currency for our Principals supply of goods. We get 3% agency commission and that the govt of india orgn asks us to get agency commission deducted from foreign bill and that agency commission will be paid to us in equivalent indian rupees. We raised the invoice for equivalent Indian rupees to claim our commission by adding IGST. But the buyer refused to pay IGST and they deducted 2% IT from the proceeds.

To get an override fee, you must encourage your sales team to generate their own commissions. But the state workmen’s compensation board ruled towards him, citing quite a lot of factors. The claimant offered canned meats, making rounds in his automotive from his home.

15 OD balance as per pass book is Rs. 2,175 Cheques of Rs. 100, Rs. 175, Rs. 150 are issued, but not yet presented for payment. A Cheque of Rs600 is deposited in the bank but not yet cleared. 45 At the time of retirement of a partner, firm gets ___ from the insurance company against the joint life Policy taken jointly for all the partners. Particulars of authorisation received by him from each principal to receive or supply goods or services on behalf of such principal separately.

Forty thousand for other services and show such RS. 10,000 as a separate item in invoice then he is considered as a pure agent. If he pay only Rs. 9,000 to the cab driver and charges Rs. 10,000 then GST is applicable on the whole amount of Rs. 10,000. The payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service. A person can act as commission agent, C&F agent or pure agent with a single principal in different transactions.

• Sell $a hundred,000 in revenue whereas working with a company that pays out 5% of income, and your commission check might be $5,000.
• If the agent has such right then such agent is a C&F agent.
• But if no such del – credere commission is paid then consignee account cannot be debited for credit sales and in that case the following entry is passed in the books of consignor for credit sales.
• Abnormal loss will be calculated at cost price only and not at invoice price.
• Of Castor Oil to Dass of Calcutta on 1st April 2006.

The consignor pays the consignee for this service, but the consignor maintains ownership of the items while they remain unsold. In most cases, a specific consignment period is defined. Some employers use straight commission, that means gross sales numbers determine each dollar a worker will get.

B.Com. – I (Semester – II), FINANCIAL ACCOUNTING (New) ,2014 Question Paper Solapur University Question Paper

Find important definitions, questions, meanings, examples, exercises and tests below for Why delcredere commission on consignment?. Vivek paid to Bhavesh 5% general commission on sales and 2.5% delcredere commission. Assuming that Dass paid the amount due by bank draft, show the account in the books of both the parties. The Swastik Oil Mills Ltd. close books on 30th June.

Assume Tony sells his antique typewriter to Robert, who is willing to sell it in his store for 15% of the asking price. There has been no money transaction between Tony and Robert , and Tony still owns the typewriter because there was no exchange. It could also be beneficial to periodically audit the inventory reported by the consignee. All expenditures by the consignor, like loading, shipping, insurance, and so on. Consignment is a type of business model in which a legal owner of goods consigns his or her items to their representative for transportation, transfer, purchase, and so on.

The credit side to be Rs.168 more than debit side. II. Provision for depreciation A/c is debited when provision for depreciation A/c is created. A. Paid application and allotment money at Rs. 5 per share. 8 Trial Balance shows arithmetical accuracy of ledger accounts, but it is not a__________proof of accuracy. 4 Identify the accounting standard which deals with provisions, contingents liabilities and contingent assets.

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Before you’ll be able to earn an override on another person’s sales, you should discover an industry that pays that sort of commission. A fee is a fee paid to a gross sales representative for selling an organization’s merchandise. For example, when you work on fee in a retail clothing retailer, your employer can pay you a percentage of each sale you make. An override fee is a fee that a gross sales representative earns when another worker makes a sale. Typically, workers similar to managers earn override commissions when gross sales reps that they handle make their very own sales.

Usually, principals define their material needs and a venture’s buy price range, or the specified worth of sale, together with a set of most well-liked situations for a deal. The commission agent is liable for assembly the best conditions requested by the principal, and should stay throughout the supplied finances or the value of sale. As lengthy as commission brokers conform to those stipulations, they possess the freedom to behave and make offers as they choose. In commercial law, is where an agent of a seller undertakes to guaranty to his principal the payment of the debt due by the buyer. The phrase “del credere” is borrowed from the Italian language, in which its signification is equivalent to our word “guaranty” or “warranty.” Story, Ag.

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While sending the goods, Dinesh paid Rs. 1,500 as forwarding expenses and insurance. You are required to show the Consignment Account and Y’s account in the book of X. Record the above mentioned transactions in Kay’s ledger showing the profit earned by the consignor. Prepare the Consignment Account and Trading and Profit & Loss Account in Books of X and his account in the books of Y.

 Learn the technique of computing value of consignment inventory lying with the consignee and also the amount of inventory reserve in it.  Learn the technique of computing cost of abnormal loss and treatment of insurance claim in relation to it.  Understand the distinction between ordinary commission, del-credere commission and over-riding commission paid to the consignee.

Another independent supplier is supplying groundnuts of like kind and quality to the said agent at the price of four thousand five hundred and fifty rupees per quintal. The value of the supply made by the principal shall be four thousand five hundred and fifty rupees per quintal or where he exercises the option; the value shall be 90 per cent. Of five thousand rupees, i.e., four thousand five hundred rupees per quintal. Prepare the consignment Account in the books of ‘X’ and their account in the books of the agent ‘Y’ of Agra.

On the basis of account sale the consignor records entries in his books periodically. The remaining goods were taken over by Q at a value of Rs. 5,000. P is allowed a commission of 2% on purchased and Q is allowed a commission of 1% on sales. Find the share of Q in the profit of joint venture.