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Invoice statement of goods prepared by the seller.

(b) Account Sales

(c) Principal

(b) Purchased

Departmental stores are those institutions of retail trade where different departments dealing in various commodities are situated under the same root and work under the control of one management.

In England, consumers co-operative store originated.

Correct option is (c) Seller

Correct option is (b) Sale 

(b) Estimated

Super Market.

In case of F. O. R. invoice, only these expenses which are incurred by the seller after the loading of the goods in railway wagons would be shown as charges, the rest are included in the F.O.R. price.

Proforma Invoice: It is essential that an ordinary invoice should be distinguished from a proforma invoice. The latter is an invoice merely for the form’s sake or for the sake of information, hence, it is called Proforma Invoice.

Del Credere Commission.

Loco Invoice: When the seller quotes any price for the goods, the price is for the goods to be delivered at the godown of the seller. The price does not include any expenses which are done by the seller on packing, cartage etc. This kind of invoice is known as loco invoice.

Specimen of Loco Invoice: 

Seller: Preeti Booksellers, Kamla Nagar, 

Kanpur: Buyer: B.N. Baijal and Sons, Wright Town, 

Jabalpur 

Description of Goods: 

20 copies of Indian History @ Rs. 48 per copy 

50 copies of Modern Maths @ Rs. 50 per copy 

30 copies of Advanced Accountancy @ Rs. 75 per copy. 

Expenses Incurred: 

Packing Rs. 175, Cartage Rs. 165,

Loading Rs. 80,

 Freight Rs. 155, Insurance Rs. 355.

Terms and Conditions:

Trade Discount 10% 

2% Cash discount if payment is made within a month. 

Prepare a Proper invoice.

Account Sale: Sometimes the owner appoints some agent to increase the sale. The owner sends the goods to his agent on certain terms and conditions. The agent sells the merchandise and calculates the number of actual sales which is submitted to the principal at regular intervals. He deducts from  this all the expenses incurred by him on behalf of the principal and the balance is remitted to the principal. The statements which the selling agent prepares and submits to his principal is called ‘Account Sale’. The account sale gives details and the values of the sales and of expenses incurred by the agent to his principal.

Difference between Statement of Account and Account Sale

The facilities and services provided by retail traders to the wholesaler may be enumerated as below:

1. Collection of Necessary Information: Retailers remain in direct touch with consumers so they provide necessary pieces of information regarding fashion, taste and habits of consumers to the wholesaler. 

2. Relieves from Retail work: Retailers sell goods in small quantities to consumers and thus they relieve the wholesaler from this burden. 

3. Relieves from Local Advertisement: It is the retailer who advertises (UPBoardSolutions.com) the product in local markets. The wholesaler need not do this. 

4. No Need of keeping contact with the consumers: There is no needier the wholesaler to keep direct contact with the consumer for the purpose of sales. This service is performed by the retailer. 

5. Advantages of Increased Sales: Retailers remain in direct and close contact with customers and can induce them to buy more or to buy new products. Due to this, a wholesaler gets the advantage of the increased sale.

Two characteristics of an agent are:

• Right on Goods: The agent does not pass any right on the goods. The ownership of goods always remains with the principal. The agent has to only make arrangements for increasing sales.
• Eligible to contract: The appointment of an agent or the existence of agency is the result of the contract. This contract is entered between the agent and the principal.

Del Credere agent is an agent appointed for the sale of certain goods and who gives a guarantee that all the credit sales would be duly paid for, in return for an extra commission known as ‘del credere commission’.