. Swathi Ltd forwarded on 1st January 2010, 100watches to Devaraj and Co. Mysore to be sold on behalf of Swathi Ltd. The cost of onewatchwasRs.500/- but the invoicepricewasRs.600/-. Swathi Ltd incurred Rs.1,200/- on freight and insurance and received Rs.10,000as advance from Devaraj and Co. Devaraj and Co. paid Rs.750 as carriage,Rs.400/- as rent and Rs.500/- as insurance and by 30th June 2004 had sold 90% of the goods for Rs.30,000/-, Devaraj and Co is entitled to a commission at 5%on the proforma invoice price of the goods sold and 25%of any surplus price realised. Devaraj and Co. remitted the amount due from them by cheque.

Pass necessary Journal Entries in the books of Swathi Ltd and also prepare Devaraj and Co. account in the books of Swathi Limited.

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