Principles of Marketing (444:
Q. 1 Mr.
Black of Islamabad sent 2,500 clocks to his agent Mr. White of Gilgit at a cost
price of Rs. 500 per clock on commission basis @ 10% on grass sales proceeds.
Mr. Black incurred expenses towards packing, transportation and insurance
amounted to 5% of the total cost price Mr. White of Gilgit paid an amount of
Rs. 5,00,000 as advance to Mr. Black. Mr. White sent account sales containing
the detail that he has draft is also sent by consignee for the due to
consignor.
Required: Journalize the above transactions in the books of both parties and prepare the necessary accounts.