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consignment account

In accounting, the term “consignment account” relates to dealing with a situation where one person or firm sends goods to another person or firm on the basis that the goods will be sold on behalf of and at the risk of the former.

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Mock test 1 in consignment account

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Mock test 4  in consignment account

consignment account is which type of account

The consignment account is a
(a) Personal account
(b) Real account
(c) Nominal account
(d) Artificial Personal account

Answer (C)

consignment account is which type of account is a nominal accounts

So consignment account is a nominal accounts. Nominal in Nature. consignment account is like a profit and loss account. all expenses and losses debited and income and gain credited.

consignment account format

Features of consignment account

features of consignment account are

(a) The party which sends the goods is called consignor.
(b) The party to whom goods are sends is called consignee.
(c) The ownership of the goods remains with the consignor.
(d) The consignor sends to consignee a Performa invoice, statement that looks like an invoice but is really not one. The object of Performa invoice is only to convey information to the consignee regarding particulars of the goods sent.
(e) The consignee recovers from the consignor all expenses incurred by him on the consignment and charge commission on sales made by him also

accounting for consignment transactions

(1) On dispatch of goods:-

Consignment account (With the cost of

To Goods sent on consignment account

(2) On payment of expenses on dispatch:-

Consignment account

To Bank account

(3) On receiving advance:

Cash or bills receivable account

To Consignee’s personal account

(4) On the consignee reporting sale (as per A/S):-

Consignee’s personal account

To Consignment account

(5) For expenses incurred by the consignee (as per A/S):-

Consignment account

To Consignee’s personal account

(6) For commission payable to the consignee:-

Consignment account

To Consignee’s personal account

consignment accounting examples

Find out mock tests in consignment accounting examples 

Consignment - Test 4

Subject :- Fundamentals of Accounting & Auditing

Chapter :- Consignment – Test 4

Questions :- 25