Consignee’s Account And Trading, Profit And Loss Account - SS3 Accounting Lesson Note
Question:
The following transactions were derived from the books of ABC TECH for the month of May 2022. You are required to prepare in tabular form:
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Consignee’s account
trading, profit and loss account
Transactions for ABC TECH in May 2022
Date |
Transaction
Amount (₦)
05/01/2022
Received goods on consignment from Consignee Ltd.
200,000
05/05/2022
Sold goods to customers for cash
120,000
05/08/2022
Sold goods to customers on credit
150,000
05/10/2022
Paid transportation charges on goods received from Consignee Ltd.
15,000
05/12/2022
Sold goods to customers for cash
80,000
05/15/2022
Paid salaries to employees
30,000
05/18/2022
Sold goods to customers on credit
200,000
05/20/2022
Received payment from credit customers
100,000
05/22/2022
Paid rent for the month
50,000
05/25/2022
Sold goods to customers for cash
75,000
05/28/2022
Received payment from credit customers
150,000
05/31/2022
Paid for electricity charges for the month
10,000
Answer:
ABC TECH Consignee’s Account for May 2022
Date |
Transaction
Debit (₦)
Credit (₦)
Balance (₦)
05/01/2022
Goods received on consignment from Consignee Ltd.
200,000
0
200,000
05/10/2022
Paid transportation charges on goods received from Consignee Ltd.
15,000
0
185,000
05/31/2022
Goods still on consignment
0
185,000
0
Total
215,000
185,000
ABC TECH Trading, Profit and Loss Account
For May 2022
Particulars |
Amount (₦)
Particulars
Amount (₦)
Sales
Gross profit
Net profit before
taxes and interest
545,000
345,000
250,000
Cost of goods
Sold on consign.
Operating costs:
Salaries
Rent
Electricity
Transport
200,000
0
30,000
50,000
10,000
15,000