H. Ltd. forwarded on 1st December, 2017, 50 pressure cookers to Kale of Mumbai to be sold on behalf of H. Ltd. The cost of one pressure cooker was Ksh 1,200 but the invoice price was Ksh 1,600. H. Ltd. incurred Ksh 2,000 on freight and insurance. Kale received the consignment on 14th December, 2017 and accepted a 3 months’ draft drawn upon him by H. Ltd. for Ksh 40,000. Kale paid Ksh 1,050 as rent and Ksh 250 as insurance and by 31st March had disposed of 40 pressure cookers at Ksh 1,640 each. Kale is entitled to a commission of 5 per cent on sales including a del credere commission of 1%. Kale sold 10 pressure cookers on credit and was not able to recover sale proceeds of one pressure cooker because of insolvency of the debtor. Required:

(i) Prepare all the ledger accounts in the books of H Ltd; (8 Marks)

(ii) Pass journal entries for all the transactions relating of consignment. (7 Marks)

P11.2a (lo 2, 4) fechter corporation had the following stockholders’ equity accounts on january 1, 2020: common stock ($5 par) $500,000, paid-in capital in excess of par—common stock $200,000, and retained earnings $100,000. in 2020, the company had the following treasury stock transactions. journalize and post treasury stock transactions, and prepare stockholders’ equity section. mar. 1 purchased 5,000 shares at $8 per share. june 1 sold 1,000 shares at $12 per share. sept. 1 sold 2,000 shares at $10 per share. dec. 1 sold 1,000 shares at $7 per share. fechter corporation uses the cost method of accounting for treasury stock. in 2020, the company reported net income of $30,000. instructions a. journalize the treasury stock transactions, and prepare the closing entry at december 31, 2020, for net income. b. open accounts for (1) paid-in capital from treasury stock, (2) treasury stock, and (3) retained earnings. (post to t-accounts.) c. prepare the stockholders’ equity section for fechter corporation at december 31, 2020.