DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : CH. ANURADHA

Designation : Lecturer
Branch : Commercial & Computer Practice
Institute : GPW, Bheemunipatnam
Year/Semester : IV semester
Subject : Accountancy-III
Sub-code : CCP-402
Topic : CONSIGNMENT ACCOUNTS
Sub Topic : Journal Entries in the books of
Consignor
Duration : 50 Minutes
Teaching aids : PPT, ANIMATION
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Objectives:

On completion of this period, you would be

able to:
 Record Journal Entries in the books of
consignor

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Recap

In the last class, we discussed about

 Concept of consignment
 Differences between ordinary sale and
 Consignment
 Terms used in consignment
 Proforma Invoice
 Advance
 Commission
 Account sales and its Proforma
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Journal entries in the books of Consignor

1. For goods sent on consignment

Consignment a/c Dr.

To goods sent on Consignment a/c
(Being the goods sent on consignment)

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2. For expenses incurred by consignor
Consignment a/c Dr.
To Bank/Cash a/c
(Being the expenses incurred )

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3. For advance received from consignee
Bank/Cash/Bills Receivable a/c Dr.
To Consignee a/c
(Being the advance received )

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4. When the bill is discounted with bank
Bank a/c Dr.
Discount a/c Dr.
To Bills Receivable a/c
(Being the bill discounted with bank )

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5. For goods sold by the consignee
Consignee a/c Dr.
To Consignment a/c
(Being goods sold by consignee )

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6. For expenses incurred by consignee
Consignment a/c Dr.
To Consignee a/c
(Being the expenses incurred consignee)

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7. For commission payable to consignee
Consignment a/c Dr.
To Consignee a/c
(Being the commission payable to consignee)

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8. For transferring profit to Profit And Loss a/c
Consignment a/c Dr.
To Profit And Loss a/c

(Being the profit transferred to P&L a/c)

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9. For transferring loss to Profit And Loss a/c
Profit and Loss a/c Dr.
To Consignment a/c
(Being the loss transferred to P&L a/c)

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10. For settlement of account with consignee
Cash/Bank/Bills Receivable a/c Dr.
To Consignee a/c
(Being the net amount received)

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11. For closing the Goods Sent On Consignment a/c
Goods sent on consignment a/c Dr.
To Trading/Purchases a/c
(Being the Goods Sent on Con. a/c closed)

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Summary:

We discussed about
 Journal Entries in the books of Consignor

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Quiz

1. Profit on Consignment is transferred to

a) Profit and Loss a/c
b) Consignment
c) Loss a/c
d) Profit a/c

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Quiz

2. Goods sent on consignment a/c is

a) Closed by transferring to Profit & Loss a/c
b) Carry forward to next year
c) Closed by transferring to Trading a/c
d) None of the above

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Quiz

3. Bills receivable is discounted

a) with consignor
b) with consignee
c) with customer
d) with banker

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Assignment:
Write Journal entries in the books of Consignor for:
2. Goods sent
3. Expenses of consignor
4. Expenses of consignee
5. Commission
6. Advance
7. Advance bill discounted
8. Profit or loss transfered

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