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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:

  • 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

     

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