Ch 2Consignment Accounts — Class 12 Accountancy, concept-first.

A trader who manufactures or deals in goods does not always sell in his own city or town. To reach buyers in a distant market, he often sends goods to an agent there, with instructions to sell them on…

Every consignment transaction, however large or small, is built around two documents that replace the ordinary invoice and receipt of a ready sale.

Because the consignee bears none of the ownership risk, his only reward for selling the consignor's goods is a commission, calculated as a percentage of the sale proceeds he realises.

A consignment attracts two separate streams of expenditure — one incurred by the consignor before the goods leave his hands, and one incurred by the consignee after the goods reach him.

At the close of the accounting period, any goods still lying unsold with the consignee must be valued and brought into the consignor's books, exactly as closing stock is brought into any ordinary trad…

Goods sent over a distance, particularly bulk or liquid goods, are almost never received by the consignee in the exact quantity despatched.

In the consignor's own books, a consignment is recorded through a small, fixed set of accounts that a Telangana Intermediate commerce consignment accounts answer should always be able to reproduce wit…

The consignee is only an agent, never an owner, so his books never show the value of the goods he receives at all — no entry is passed merely on receipt of goods on consignment, exactly because owners…

Sample papers and previous-year board questions for this subject.