SOLUTION: Qn1. Revenue on consignment Sale: Dotto of Dodoma makes sewing machines at a cost of TZS 120,000 each. On 1st January, 2020 he consigned 200 to Khalid at Mtwara to be sold on behal

Question 1203222: Qn1. Revenue on consignment Sale: Dotto of Dodoma makes sewing machines at a cost of TZS 120,000 each. On 1st January, 2020 he consigned 200 to Khalid at Mtwara to be sold on behalf of Dotto, Khalid receiving a commission of 8% on sales plus 25% del credere. Dotto incurred TZS 500,000 as forwarding expenses and insurance. 10 machines were damaged during transit for which Dotto received TZS 1,050,000 from insurers. Khaid took delivery of remaining machines paying TZS 1,140,000 as freight. Import duty, cartage, etc. (Subsequently he also paid TZS 500,000 as storage and other charges). Khalid sold 160 machines @ TZS 180,000 and remitted the amount due to Datto Required: Prepare the Consignment Account in Dotto's books to disclose profit on consignment and the value of closing inventory to be reported in the financial statements of Dotto for the year 2020
Answer by ikleyn(52909) (Show Source): You can put this solution on YOUR website!
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