The document contains questions about accounting concepts related to consignment. Consignment refers to goods forwarded by an owner to an agent for the purpose of sale. In the consignor's books, the balance of consignment stock is shown as an asset on the balance sheet. In the consignee's books, no entry is made when goods are received from the consignor. Expenses incurred by the consignee are debited to the consignor's account, and sales of consigned goods are credited to the consignor's account.
The document contains questions about accounting concepts related to consignment. Consignment refers to goods forwarded by an owner to an agent for the purpose of sale. In the consignor's books, the balance of consignment stock is shown as an asset on the balance sheet. In the consignee's books, no entry is made when goods are received from the consignor. Expenses incurred by the consignee are debited to the consignor's account, and sales of consigned goods are credited to the consignor's account.
The document contains questions about accounting concepts related to consignment. Consignment refers to goods forwarded by an owner to an agent for the purpose of sale. In the consignor's books, the balance of consignment stock is shown as an asset on the balance sheet. In the consignee's books, no entry is made when goods are received from the consignor. Expenses incurred by the consignee are debited to the consignor's account, and sales of consigned goods are credited to the consignor's account.
(a). goods forwarded from one place to another (b). goods forwarded by a person to another. (c). goods despatched by its owner to its agent (d). goods despatched by it owner to his agent for the purpose of sale. 2. Goods sent on consignment should be debited by consignor to: (a). consignment account (b). goods sent on consignment account (c). consignors account 3. In the books of consignor the balance of the consignment stock would be shown: (a). as an asset in the balance sheet. (b). as liability in the balance sheet. (c). On the credit side of the trading account. 4. In the books of consignee, on despatch of goods by the consignor the entry would be: (a). Consignment account [Dr.] To goods sent on consignment account [Cr.] (b). consignment account [Dr.] To consignor account [Cr.] (c). No entry 5. In the books of consignee the expenses incurred by him on consignment are debited to: (a). consignment account (b). cash account (c). consignor’s account 6. In the books of consignee the sale of goods is credited to: (a). consignor’s account (b). sales account (c). consignee’s account Answers: 1. d 2. a 3. a
4. c 5. c 6. a
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1. Goods despatched by a manufacturer or wholesaler to an agent for the purpose of sale are called ———————-. 2. Abnormal loss is credited to ———————— account. 3. Del-Credere commission is normally calculated on ———————- sales. 4. The document giving the description of goods and their price sent to the consignee by the consignor is known as ————————-. 5. Consignment account of the nature of a ————————- account. Answers: 1. Consignment 2. Consignment 3. Total