Name items which are recorded at the invoice price in the Consignment Account. Give journal entries passed for the adjustment of loading in respect of each item.

What is loading? How do you compute it? Give examples.

What do you understand by invoice price? Give reasons for consigning the goods at the invoice price.

Find out the loading in the following cases:

i.Goods costing Rs. 1,800 are invoiced at Rs. 2200.

ii.Cost price Rs. 600 invoiced at a profit of 20% above cost

iii.Cost price is Rs. 600 invoiced at a profit of 20% on invoice price.

iv.Invoice price is Rs. 600 involving profit of 20% on invoice price.

v.Invoice price is Rs. 600 involving profit of 20% above cost.

Work out the following problems.

i.Cost price of a fan is Rs. 500 and loading is Rs. 100. What is the invoice price.

ii.Cost price of a watch is Rs. 150. It is consigned at 333% above cost. Find out the invoice price.

iii.Cost price of a bicycle is Rs. 500. It is invoiced at a profit of 20% on invoice price. What is the invoice price?

iv.A ceiling fan is consigned at an invoice price of Rs. 250. Invoice price is cost plus a profit of 10% on the invoice price. What is the cost price.

v.Invoice price of a chair is Rs. 300 which is 20% above cost. Find out its cost price.

Name the items that involve loading.

What is Loading?