Joint Venture and Consignment Accounts

Tunde consigned goods valued at $\text{₦}600,000$ to Okon and paid $\text{₦}30,000$ for carriage and insurance. Okon sold $80\%$ of the consignment for $\text{₦}560,000$ and incurred $\text{₦}20,000$ in selling expenses. Okon is entitled to an ordinary commission of $5\%$ and a del-credere commission of $2.5\%$ on total sales. During the period, credit sales of $\text{₦}15,000$ proved irrecoverable as a bad debt. What is the net amount due from Okon to Tunde upon final settlement of the account?

Under a standard consignment arrangement, dispatching goods from the consignor to the consignee transfers physical possession of the merchandise to the consignee, while legal ownership and title to the unsold goods remain with the consignor.

Bello consigned goods to Segun and paid him a del-credere commission in addition to his ordinary commission. If a credit customer defaults on payment to Segun, how should the resulting bad debt be recorded in Bello's ledger?

Zainab Traders dispatched $1,200$ crates of industrial lubricants costing $\text{₦}8,000$ per crate on consignment to Aliyu & Sons. Zainab Traders paid $\text{₦}480,000$ for freight and $\text{₦}120,000$ for transit insurance. Aliyu & Sons paid $\text{₦}240,000$ for clearing charges, $\text{₦}180,000$ for godown rent, and $\text{₦}300,000$ for sales commission. If $900$ crates were sold by the end of the accounting period, what is the total value of the unsold consignment stock in Naira ($\text{₦}$)?

Olu & Sons consigned $1,000$ litres of industrial chemical costing $\text{₦}1,000$ per litre to an agent in Ibadan. Olu & Sons paid $\text{₦}120,000$ for freight and insurance. During transit, $100$ litres were completely destroyed in an accident. Upon arrival, the agent paid $\text{₦}45,000$ for clearing and unloading. Due to natural evaporation, $90$ litres were lost during storage. If the agent subsequently sold $600$ litres, what is the valuation of the unsold consignment stock?

Emeka Enterprises consigned $400$ cases of goods costing $\text{₦}10,000$ per case to Zainab Stores and paid $\text{₦}200,000$ for freight and transit insurance. Zainab Stores paid landing charges of $\text{₦}100,000$ and sales promotion expenses of $\text{₦}50,000$. Zainab Stores sold $300$ cases at $\text{₦}15,000$ per case, earning an ordinary commission of $5\%$ and a del-credere commission of $2.5\%$ on gross sales. Credit customers defaulted on payments totaling $\text{₦}60,000$. What is the net amount remitted by Zainab Stores to Emeka Enterprises in full settlement?

Kemi Merchants consigned $600$ cartons of goods to Musa. The terms of remuneration agreed upon were an ordinary commission of $5\%$ on total sales, a del-credere commission of $2.5\%$ on credit sales, and an overriding commission of $10\%$ on excess sales proceeds above the benchmark price of ₦$4,000$ per carton. Musa sold $400$ cartons on credit at ₦$4,500$ per carton and $200$ cartons for cash at ₦$4,000$ per carton. During the period, a credit customer defaulted, giving rise to a bad debt of ₦$30,000$. What is the net amount payable by Musa to Kemi Merchants?

Ade consigned 500 drums of vegetable oil costing ₦10,000 per drum to an agent in Kaduna. Ade paid carriage and insurance costs totaling ₦200,000. During transit, 50 drums were completely destroyed in an accident. The consignee subsequently paid ₦90,000 for clearing charges and ₦50,000 for warehouse rent. What is the value of the abnormal loss to be credited to the Consignment Account?

Alhassan & Co. consigned $500$ units of goods valued at $\text{₦}1,500$ each to Chukwu & Sons. Alhassan & Co. paid $\text{₦}50,000$ for carriage and insurance. Chukwu & Sons sold $400$ units at $\text{₦}2,200$ per unit, paying clearing charges of $\text{₦}25,000$ and selling expenses of $\text{₦}15,000$. Chukwu & Sons is entitled to an ordinary commission of $5\%$ and a del-credere commission of $2.5\%$ on total sales. During the period, credit customers defaulted on a payment of $\text{₦}18,000$.

What is the net amount due from Chukwu & Sons to be shown in the Consignee's Personal Account in Alhassan & Co.'s books?

In consignment accounting, an abnormal loss is credited to the Consignment Account at cost plus proportional expenses, whereas a normal loss is not separately credited to the Consignment Account but instead inflates the cost per unit of the remaining good units.

Adeola dispatched $400$ bags of rice costing $\text{₦}25,000$ per bag to Musa on consignment. Adeola paid freight of $\text{₦}500,000$ and transit insurance of $\text{₦}300,000$. Upon receiving the goods, Musa paid clearing charges of $\text{₦}200,000$, godown rent of $\text{₦}150,000$, and sales promotion expenses of $\text{₦}100,000$. At the end of the trading period, Musa had sold $300$ bags of rice.

Calculate the total value of the unsold consignment stock in Naira ($\text{₦}$).

Adeleke Traders consigned $300$ boxes of merchandise costing $\text{₦}8,000$ per box to Danjuma & Sons. Adeleke Traders paid $\text{₦}120,000$ for freight and transit insurance. Danjuma & Sons paid landing charges of $\text{₦}60,000$ and warehouse rent of $\text{₦}40,000$. Danjuma & Sons sold $240$ boxes at $\text{₦}12,000$ per box and earned an ordinary commission of $5\%$ and a del-credere commission of $2.5\%$ on total sales. A credit customer defaulted, creating a bad debt of $\text{₦}35,000$. Before sales commenced, Danjuma & Sons had remitted a cash advance of $\text{₦}500,000$. What is the net amount (in $\text{��}$) remitted by Danjuma & Sons to settle their account in Adeleke Traders' ledger?

Match each consignment ledger account or balance in the consignor's books on the left with its correct closing treatment or financial statement presentation on the right:

Babatunde Ventures consigned $200$ cases of goods costing $\text{₦}5,000$ per case to Kemi & Sons. Babatunde Ventures paid $\text{₦}50,000$ for freight and transit insurance. Kemi & Sons sold $150$ cases for $\text{₦}8,000$ per case, incurring selling expenses of $\text{₦}30,000$. Kemi & Sons are entitled to an ordinary commission of $5\%$ and a del-credere commission of $2.5\%$ on total sales. During the period, a credit customer defaulted, resulting in a bad debt of $\text{₦}20,000$. What is the net amount due to Babatunde Ventures from Kemi & Sons?