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 Â
-
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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