In this post, Consignment Account, Consignor, Consignee, their relation of Principal and agent, commission, del-credere commission, overriding commission, their journal entries with practical examples is discussed in detail.
Table of Contents
Consignment Account
In accounting, Consignment is an agreement between two parties to sell the product on the basis of commission. One party who owns the goods until sold to a third party is the consignor and the other party is called the consignee who sells the goods for the sake of commission. Ownership of the goods remains in the hands of the consignor until they are sold to a third party.
Parties of Consignment
There are two parties in the consignment, one is called the consignor, and the other one is called the consignee detailed below:
Consignor or principal
A consignor or principal is a person who sends goods on consignment to a consignee or agent to sell on commission.
A consignee or agent
A consignee or agent is a person who sells goods of a consignor or principal in the market on commission.
Difference between Commission and Delcreder Commission
Commission
The commission is percentage on sales remuneration paid by consignor to consignee for his/her selling services in which consignee is not liable for any bad debt.
Del Creder Commission
Del Creder commission is percentage on sales remuneration paid by consignor to consignee for his/her selling services in which consignee is liable for any bad debt.
Account Sales & Performa Invoice
Account Sales
Account sale is a document which is sent by consignee to consignor in which all the detail of sales, consignee’s expenses and commission is mentioned.
Performa Invoice
Performa Invoice is a document which is sent by consignor to consignee containing detail of goods sent for sale, its quality, quantity and price.
Difference between Normal Loss and Abnormal Loss
Normal Loss is a type of loss which occurs due to natural cause and it cannot be avoided such as evaporation, leakage etc. In consignment there is no separate journal entry for normal loss whereas, it is adjusted in calculation of stock.
Abnormal loss is a type of loss that occurs due to unnatural causes such as fire, accident, etc. Abnormal loss is avoidable loss and there is a separate entry for this in which profit & loss is debited and the consignment account is credited.
Overriding commission
In consignment, the overriding commission is an extra commission that is given by the consignor to the consignee to promote the extra effort to sell the products.
Consignment Inward or Inland
When a consignment is received by a consignee from a consignor to sell in the market for commission is called consignment inward.
Consignment Outward or outland
When a consignment is sent to a consignee by a consignor to sell in the market is called consignment outward.
Differences between consignment and sales
Ownership
In consignment, only goods are transferred but possession is not transferred till actual sales affected whereas in sales, ownership is transferred.
Relationship
In consignment, the relationship between the consignor and consignee is of principal and agent whereas in sales the relationship is buyer and seller.
Risk
In consignment, the risk always remains with the consignor whereas in sales risk transfers to the buyer.
Account Sales with Imaginary Data
| Account Sales 50 Machines sold by order and for Akmal Bros. | ||
| Gross Sale Proceeds: | ||
| 30 @ 10,000 | 30,000 | |
| 20 @ 15,000 | 30,000 | 60,000 |
| Less Charges: | ||
| Commission 10% | ||
| (60,000 x 0.10) | 6000 | |
| Storage & Insurance | 1000 | (7000) |
| Net Proceeds | 53,000 | |
Why Consignment Account is prepared?
A consignment account is prepared to know the amount of profit or loss of the consignment.
Why Consignee Account is prepared?
Consignee account is prepared to know the net amount receivable from the consignee.
Journal Entries in the Books of Consignor
- When the consignment is dispatched
| Date | Detail | Dr. | Cr. |
| XXXX | Consignment Dr. | XXXX | |
| Goods Sent on Consignment Cr. | XXXX |
- Dispatch Expenses paid by consignor
| Date | Detail | Dr. | Cr. |
| XXXX | Consignment Dr. | XXXX | |
| Cash Cr. | XXXX |
- Any Bill or Amount Received from the consignee as an advance
| Date | Detail | Dr. | Cr. |
| XXXX | Bank/Bill Receivable Dr. | XXXX | |
| Consignee Cr. | XXXX |
- When the consignee reports sales
| Date | Detail | Dr. | Cr. |
| XXXX | Consignee Dr. | XXXX | |
| Consignment Cr. | XXXX |
- Consignee’s Commission
| Date | Detail | Dr. | Cr. |
| XXXX | Consignment Dr. | XXXX | |
| Consignee Cr. | XXXX |
- Consignee’s Expenses
| Date | Detail | Dr. | Cr. |
| XXXX | Consignment Dr. | XXXX | |
| Consignee Cr. | XXXX |
- Any bad debts if consignee is not getting del creder Commission
| Date | Detail | Dr. | Cr. |
| XXXX | Consignment Dr. | XXXX | |
| Consignee Cr. | XXXX |
- Entry for stock if the full consignment is not sold.
| Date | Detail | Dr. | Cr. |
| XXXX | Stock on Consignment Dr. | XXXX | |
| Consignment Cr. | XXXX |
- Entry in the case of Abnormal Loss
| Date | Detail | Dr. | Cr. |
| XXXX | Profit & Loss Dr. | XXXX | |
| Consignment Cr. | XXXX |
- Entry in the case of Profit in the consignment
| Date | Detail | Dr. | Cr. |
| XXXX | Consignment Dr. | XXXX | |
| Profit & Loss Cr. | XXXX |
- Entry in the case of Loss in the consignment
| Date | Detail | Dr. | Cr. |
| XXXX | Profit & Loss Dr. | XXXX | |
| Consignment Cr. | XXXX |
- Closing Entry
| Date | Detail | Dr. | Cr. |
| XXXX | Goods sent on Consignment Dr. | XXXX | |
| Trading Cr. | XXXX |
Note: If there is a difference between the cost and invoice is given in the question then two further journal entries will be made are given below but normally it is not asked at an intermediate level.
- Entry with the difference of cost and invoice price for unsold stock
| Date | Detail | Dr. | Cr. |
| XXXX | Consignment Dr. | XXXX | |
| Stock Reserve Cr. | XXXX |
- Entry with the overall difference between cost and invoice of full consignment
| Date | Detail | Dr. | Cr. |
| XXXX | Goods sent on Consignment Dr. | XXXX | |
| Consignment Cr. | XXXX |
Journal Entries in the Books of Consignee
- When an advance is paid or acceptance is given
| Date | Detail | Dr. | Cr. |
| XXXX | Consignor Dr. | XXXX | |
| Bank/Bills Payable Cr. | XXXX |
- Payment of Expenses borne by consignor
| Date | Detail | Dr. | Cr. |
| XXXX | Consignor Dr. | XXXX | |
| Cash Cr. | XXXX |
- Payment of Expenses borne by consignee
| Date | Detail | Dr. | Cr. |
| XXXX | Expense Dr. | XXXX | |
| Cash Cr. | XXXX |
- On sale of goods for cash
| Date | Detail | Dr. | Cr. |
| XXXX | Cash Dr. | XXXX | |
| Consignor Cr. | XXXX |
- On sale of goods for credit
| Date | Detail | Dr. | Cr. |
| XXXX | Sundry Debtors Dr. | XXXX | |
| Consignor Cr. | XXXX |
- Consignee’s Commission
| Date | Detail | Dr. | Cr. |
| XXXX | Consignor Dr. | XXXX | |
| Commission Cr. | XXXX |
- When goods are taken over by consignee for personal use
| Date | Detail | Dr. | Cr. |
| XXXX | Purchases Dr. | XXXX | |
| Consignor Cr. | XXXX |
- Amount received from debtors
| Date | Detail | Dr. | Cr. |
| XXXX | Cash/Bank Dr. | XXXX | |
| Sundry Debtors Cr. | XXXX |
- Bad debts, if consignee is not getting delcreder commission
| Date | Detail | Dr. | Cr. |
| XXXX | Consignor Dr. | XXXX | |
| Sundry Debtors Cr. | XXXX |
- Bad debts, if consignee is getting delcreder commission
| Date | Detail | Dr. | Cr. |
| XXXX | Commission Dr. | XXXX | |
| Sundry Debtors Cr. | XXXX |
- Final payment is given to the consignor
| Date | Detail | Dr. | Cr. |
| XXXX | Consignor Dr. | XXXX | |
| Cash/Bank Cr. | XXXX |
Example 1 Questions for Understanding Simple Case (Intermediate Level)
Suzuki Motors Ltd. consigned to their selling agents Star Motors in Lahore two cars costing Rs. 20,000 for sale on the basis of 8% commission plus 2% delcredre commission Star Motors paid selling expenses amounting to Rs. 1,300. Suzuki Motors Ltd. paid for carriage, freight and insurance Rs.700.
Consignee sold one car for Rs. 13,000 and remitted Rs. 11,500 on account. The second car was sold for Rs. 13,500, but Rs. 13,500 were not realized and become a bad debt.
Show the ledger Accounts in the books of consignor assuming that Star Motors settled the account with Suzuki Motors Ltd.
Solution:
| Consignment to Lahore A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Goods Sent on Consignment | 20,000 | Star Motors A/C (Sales) | 25,000 | ||
| Cash A/C (Consignor’s Expenses) | 700 | ||||
| Star Motors A/C (Consignee’s Expenses) | 1300 | ||||
| Star Motors A/C (Consignee’s Commission) (25,000 x 0.10) | 2500 | ||||
| Profit Transferred to Profit & Loss A/C | 500 | ||||
| 25000 | 25000 | ||||
| Star Motors A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Consignment to Lahore A/C | 25,000 | Consignment to Lahore A/C | 1300 | ||
| Consignment to Lahore A/C | 2500 | ||||
| Bank A/C | 11500 | ||||
| Balance c/d (Bank) | 9700 | ||||
| 25,000 | 25,000 | ||||
| Goods Sent on Consignment A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Trading A/C | 20,000 | Consignment to Lahore A/C | 20,000 | ||
| 20,000 | 20,000 | ||||
Example 2 Questions for Understanding Stock Case (Intermediate/Advanced Level)
On 1st January 2005 Razzaq & Co. of Lahore consigned to Mushtaq & Co. of Mardan 100 cycles at Rs. 500 each. Razzaq & Co. had paid Rs.200 for packing etc., Rs. 50 for insurance and Rs. 250 for carriage.
On 1st March, 2005 Mushtaq & Co. sold 75 cycles for Rs. 45000. The expenses thereon being Rs. 2000.
Mushtaq and Co. are entitled for commission of 5% and 2% (delcredre) on sales and they remitted Rs.30,000 on account. One customer who purchased 5 cycles failed to pay his debts due to his insolvency.
Required:
Prepare the necessary ledgers Accounts in the books of Razzaq & Co.
Solution:
Razzaq & Co’s Journal
| Date | Particulars | Dr | Cr |
| 1st Jan 2005 | Consignment to Mardan A/C | 50,000 | |
| Goods Sent on Consignment A/C | 50,000 | ||
| (Goods sent by consignor) | |||
| 1st Jan | Consignment to Mardan A/C | 500 | |
| Cash A/C | 500 | ||
| (Expenses paid by consignor) | |||
| 1st Mar | Mushtaq & Co’s A/C | 45,000 | |
| Consignment to Mardan A/C | 45,000 | ||
| (Consignment sold by consignee) | |||
| 1st Mar | Consignment to Mardan A/C | 2000 | |
| Mushtaq & Co’s A/C | 2000 | ||
| (Expenses paid by consignee) | |||
| 1st Mar | Consignment to Mardan A/C | 3150 | |
| Mushtaq & Co’s A/C | 3150 | ||
| (Commission of consignee 7% on sales) | |||
| 1st Mar | Cash A/C | 30,000 | |
| Mushtaq & Co’s A/C | 30,000 | ||
| (Amount remitted by Mushtaq & Co) | |||
| 1st Mar | Stock on Consignment A/C W1 | 12625 | |
| Consignment to Mardan A/C | 12625 | ||
| (Stock of consignment unsold) | |||
| 1st Mar | Consignment to Mardan A/C | 1975 | |
| Profit & Loss A/C | 1975 | ||
| (Profit transferred to P&L A/C) | |||
| 1st Mar | Goods sent on consignment A/C | 50,000 | |
| Trading A/C | 50,000 | ||
| Consignment to Mardan A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| 1st Jan 2005 | Goods Sent on Consignment | 50,000 | 1st Mar | Mushtaq & Co’s A/C (Sales) | 45,000 |
| 1st Jan | Cash A/C (Consignor’s Expenses) | 500 | 1st Mar | Stock on Consignment W1 | 12,625 |
| 1st Mar | Mushtaq & Co’s A/C (Consignee’s Expenses) | 2000 | |||
| 1st Mar | Mushtaq & Co’s A/C (Consignee’s Commission) | 3150 | |||
| Profit Transferred to Profit & Loss A/C | 1975 | ||||
| 57625 | 57625 | ||||
| Mushtaq & Co’s A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| 1st Mar | Consignment to MardanA/C | 45,000 | 1st Mar | Cash | 30,000 |
| 1st Mar | Consignment to Mardan A/C | 2000 | |||
| 1st Mar | Consignment to Mardan A/C | 3150 | |||
| Balance c/d | 9850 | ||||
| 45,000 | 45,000 | ||||
| Goods Sent on Consignment A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| 1st Mar | Trading A/C | 50,000 | 1st Jan 2005 | Consignment to Mardan A/C | 50,000 |
| 50,000 | 50,000 | ||||
Working 1: Calculation of Closing Stock
| Cost of 25 Cycles (25 x 500) | 12,500 |
| Add Proportionate Expenses Consignor: | |
| (500/100) x 25 = 125 | 125 |
| Add Proportionate Expenses Consignee | 0 |
| Value of Unsold Stock | 12625 |
Example 3 Questions for Understanding Stock Case (Intermediate/Advanced Level)
Ali sent out a consignment of the value of Rs 5,000 to Bashir drawing on the latter for Rs. 4,000 as an advance against the same. Ali paid Rs.400 for freight etc. Bashir cleared the goods paying Rs. 200 for duty. He sold on credit half the lot for Rs 4,000 and half of the remaining sold for cash Rs. 2,200 Bashir’s remuneration is per cent on gross proceeds Bashir sent out an account sales and a draft to Ali for the balance as shown therein Rs. 1,250 worth of goods are in hand with Bashir.
Required: Open the consignment Account and Bashir’s Account in the book of Ali to record the above transactions.
Solution:
Consignment to Bashir Account
| Date | Detail | Rs. | Date | Detail | Rs. |
| Goods Sent on Consignment A/C | 5,000 | Bashir A/C (Sales) | 6200 | ||
| Cash A/C (Expenses) | 400 | Stock on Consignment A/C W:1 | 1400 | ||
| Bashir A/C (Expenses) | 200 | ||||
| Bashir A/C (Commission) | 155 | ||||
| 6200 x (2.5/100) | |||||
| Balance c/d (Profit) | 1845 | ||||
| 7600 | 7600 |
Bashir Account
| Date | Detail | Rs. | Date | Detail | Rs. |
| Consignment to Bashir A/C | 6200 | Bills Receivable A/C | 4,000 | ||
| Consignment to Bashir A/C | 200 | ||||
| Consignment to Bashir A/C | 155 | ||||
| Balance (Bank) | 1845 | ||||
| 6200 | 6200 |
W1: Calculation of Unsold Stock
| Unsold Stock 500 x (1/4) | 1250 |
| Direct Expenses Proportion: | |
| 600 x (1/4) | 150 |
| Cost of Unsold Stock | 1400 |
Example 4 Questions for Understanding (Bad debt Case) (Intermediate/Advanced Level)
Rizwan of Gujranwala sent 100 sewing machines to Aslam of Hong Kong at Rs. 650 per machine. The consignor paid Rs. 2000 for packing and dispatching charges. Aslam immediately after receiving the consignment accepted a bill for Rs. 40,000. After some time Aslam reported that 80 machines were sold for Rs. 875 each and expenses being on freight Rs. 3000, on go down rent Rs. 250, and on insurance Rs. 500. Aslam is entitled to a commission of 9% on sales. Due to insolvency of a customer who purchased 4 machines failed to pay anything. Show consignment account, Aslam account and goods sent on consignment account.
Solution:
| Consignment to Hong Kong A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Goods Sent on Consignment | 65,000 | Aslam’s A/C (Sales) | 70,000 | ||
| Cash A/C (Consignor’s Expenses) | 2000 | Stock on Consignment W2 | 14,000 | ||
| Aslam’s A/C (Consignee’s Expenses) | 3750 | ||||
| Aslam’s A/C (Consignee’s Commission) | 6300 | ||||
| Aslam’s A/C (Consignee’s Bad Debt) W1 | 3500 | ||||
| Profit Transferred to Profit & Loss A/C | 3450 | ||||
| 84000 | 84000 | ||||
| Aslam’s A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Consignment to Hong Kong A/C | 70,000 | Bills Receivable Account | 40,000 | ||
| Consignment to Hong Kong A/C | 3750 | ||||
| Consignment to Hong Kong A/C | 6300 | ||||
| Consignment to Hong Kong A/C W1 | 3500 | ||||
| Balance c/d | 16450 | ||||
| 70,000 | 70,000 | ||||
| Goods Sent on Consignment A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Trading A/C | 65,000 | Consignment to Hong Kong A/C | 65,000 | ||
| 70,000 | 70,000 | ||||
Working 1: Calculation of Bad Debts
Value of 4 machines at selling price = 4 x 875 = 3500
Working 2: Calculation of Closing Stock
| Cost of 20 Machines (20 x 650) | 13,000 |
| Add Proportionate Expenses Consignor: | |
| (2000/100) x 20 =400 | 400 |
| Add Proportionate Expenses Consignee: | |
| (3000/100) x 20 =600 | 600 |
| Value of Unsold Stock | 14,000 |
Example 5 Questions for Understanding (Abnormal Loss Case) (Intermediate/Advanced Level)
MS. Kaleem Traders sent 100 machines to Habeeb on consignment. The cost of each machine was Rs.12000. The expenses of MS. Kaleem traders were, Freight Rs.7000 and insurance Rs.3000. During transit one machine was destroyed and the insurance company admitted Rs.9000 towards that claim. Habeeb sold 7 machines at Rs.15000 each and paid for storage and insurance Rs. 3400. Habeeb then accepted a bill for Rs 90,000 at 3 months drawn by Mis Kaleem traders, which they discounted immediately with their bank at 6% p.a It was agreed that Habeeb is to get 5% commission.
Requirement: Give the consignment account in the books of MS. Kaleem Traders.
Solution:
| Consignment to Habib A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Goods Sent on Consignment | 1200,000 | Habib’s A/C (Sales) | 105,000 | ||
| Cash A/C (Consignor’s Expenses) | 10,000 | Stock on Consignment A/C W:1 | 111,3200 | ||
| Habib’s A/C (Consignee’s Expenses) | 3400 | Profit & Loss (Abnormal Loss W:2) | 3100 | ||
| Habib’s A/C (Consignee’s Commission) (105,000 x 0.05) | 5250 | ||||
| Profit Transferred to Profit & Loss A/C | 2650 | ||||
| 12,21300 | 12,21300 | ||||
| W:1 Calculation of Stock | |
| Cost of Unsold Machines 92 x 12000 | 1104,000 |
| Proportionate Direct Expenses: | |
| 10000 x (92/100) =9200 | 9200 |
| Total Cost of Unsold Stock | 111,3200 |
| W:2 Calculation of Abnormal Loss | |
| Cost of lost Machine 1 x 12000 | 12000 |
| Proportionate Expenses of Consignor: | |
| 10000 x (1/100) | 100 |
| Abnormal Loss | 12100 |
| Less Insurance Claim | (9000) |
| Total Abnormal Loss | 3100 |
Example 6 Questions for Understanding (Abnormal Loss Case) (Intermediate/Advanced Level)
Saleem of Lahore consigned 100 cases of candles to Aslam of Multan which cost him Rs.50 per case. He incurred the following costs: Packing Rs.100/-, Carriage Rs.150/- and Railway freight Rs.200/-. Some of the cases were damaged in transit and Aslam took delivery of 90 cases only. Aslam spent Rs.50/- for cartage and Rs.300/- for Godown rent and sold the consignment at Rs.60/- per case. He sent the net amount to Saleem after deducting his expenses and commission at the rate of 5% on the sale proceeds together with his account sales. Saleem also received Rs.300/- from the railway for damages.
Requirement: Show how the consignment account would appear in books of Saleem.
Solution:
| Consignment to Multan A/C | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Goods Sent on Consignment | 5000 | Aslam’s A/C (Sales) | 5400 | ||
| Cash A/C (Consignor’s Expenses) | 450 | Profit & Loss (Abnormal Loss W:1) | 245 | ||
| Aslam’s A/C (Consignee’s Expenses) | 350 | P&L A/C (Loss) | 425 | ||
| Aslam’s A/C (Consignee’s Commission) (5400 x 0.05) | 270 | ||||
| 6070 | 6070 | ||||
| W:1 Calculation of Abnormal Loss | |
| Cost of lost Machine 10 x 50 | 500 |
| Proportionate Expenses of Consignor: | |
| 450 x (10/100) | 45 |
| Abnormal Loss | 545 |
| Less Insurance Claim | (300) |
| Total Abnormal Loss | 245 |
Important MCQ’s of Consignment
| 1 | What is the manufacturer or wholesaler who sends his goods for the purpose of sales known as? | |
| A. Consignee | B. Consignor | |
| C. Drawer | D. Agent | |
| 2 | The relationship between consignor and consignee is that of: | |
| A. Principal, and Agent | B. Debtor and Creditor | |
| C. Buyer and Seller | D. Endorser and Endorsee | |
| 3 | The remuneration of the consignee for selling the goods of the consignor is called: | |
| A. Salary | B. Interest | |
| C. Dividend | D. Commission | |
| 4 | In consignment all the expenses either paid by the consignor himself or by the consignee are borne by the_______. | |
| A. Consignor | B. Consignee | |
| C. Bank | D. Special agent | |
| 5 | Account sale is submitted by __________ | |
| A. Consignee to consignor | B. Debtor to creditor | |
| C. Principal to agent | D. Creditor to Debtor | |
| 6 | In case of del-credre commission the liability for bad debts will be on ______. | |
| A. Consignee | B. Consignor | |
| C. Bank | D. Insurance Company | |
| 7 | Abnormal loss occurs due to __________ | |
| A. Fire | B. Accident | |
| C. Theft | D. All of these | |
| 8 | When goods are sent on consignment, debit is given to ____. | |
| A. Consignee’s Account | B. Sales Account | |
| C. Consignor’s Account | D. Consignment Account | |
| 9 | In the books of consignee the expenses incurred by him on consignment are debited to: | |
| A. Purchases account | B. Consignment account | |
| C. Cash account | D. Consignor’s account | |
| 10 | In the books of consignor the balance of the consignment stock account would be shown: | |
| A. As an asset in the balance sheet | B. As a liability in the balance sheet | |
| C. On the credit side of the trading account | D. On the debit side of profit and loss account | |
| 11 | In the book of consignor, profit on consignment should be credited to ______ | |
| A. Profit and loss account | B. Cash account | |
| C. Consignee’s account | D. Consignment account | |
| 12 | Consignee _____ | |
| A Bears expenses and losses in consignment | B. Shares profit made on the sale of goods | |
| C. Receives his commission from the consignor | D. All of these | |
| 13 | _____ is paid to the agent to work hard to push a new line of product in the market. | |
| A. Commission | B. Delcredre commission | |
| C. Overriding commission | D. Ordinary commission | |
| 14 | In consignment the risk attached to goods delivered is with: | |
| A. Seller | B. Buyer | |
| C. Consignor | D. Consignee | |
| 15 | In books of consignee, the cash received from sundry debtors should be debited to: | |
| A. Consignor’s account | B. Cash account | |
| C. Sundry debtors account | D. Consignee’s account | |
| 16 | In case of delcredre commission, the liability for bad debts will be on: | |
| A. Consignee | B. Consignor | |
| C. Insurance company | D. None of these | |
| 17 | Consignee is: | |
| A. Principal | B. Agent | |
| C. Creditor of the consignee | D.None of these | |
| 18 | The forwarding letter sent by consignor to consignee is a substitute of: | |
| A. Voucher | B. Journal | |
| C. Invoice | D. Consignment account | |
| 19 | In consignee’s book, the payment of expenses by consignee should be debited to: | |
| A. Consignment account | B. Consignor account | |
| C. Cash account | D. Expenses account | |
| 20 | In the book of consignee, Del-credere commission should be debited to: | |
| A. Commission account | B. Consignor’s account | |
| C. Del-credere commission account | D. Cash account | |
| 21 | A person to whom the goods are sent is known as: | |
| A. Consignor | B. Consignee | |
| C. Drawer | D. Drawee | |
| 22 | Goods sent on consignment is a nature of: | |
| A. Personal account | B. Real account | |
| C. Nominal account | D. Fixed account | |
| 23 | In sale, the risk and damaged attached to goods sold are transferred to: | |
| A. Seller | B. Consignee | |
| C. Consignor | D. Buyer | |
| 24 | Nature of consignee account is: | |
| A. Personal account | B. Nominal account | |
| C. Real account | D. Cash account | |
| 25 | What shows the details about the sale of goods, expenses paid by consignee? | |
| A. Account sales | B. Sales account | |
| C. Purchases account | D. Sales book | |
| 26 | In the books of consignor, the unsold stock with the consignee should be debited to: | |
| A Consignment stock account | B. Consignment account | |
| C. Stock account | D. Consignees account | |
| 27 | In consignment all the expenses, either paid by the consignor himself or by the consignee are borne by the: | |
| A. Consignor | B. Consignee | |
| C. Purchaser | D. Courier | |
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