Q.What is a proforma invoice? How does it differ from an account sales? Explain the purpose of each document in a consignment transaction.

An Account Sales is the statement a consignee sends to the consignor showing the result of the consignment — sales made, expenses, commission and the net amount remittable. It is the consignee's report of what he has done with the consigned goods.

An Account Sales is a periodical summary statement prepared and sent by the consignee to the consignor. It contains full particulars of the consignment transactions handled by the consignee, namely: the quantity and value of goods sold, the gross sale proceeds, the various expenses incurred by the consignee on the consignment, the commission due to the consignee for his services, any advance already remitted, and finally the net balance (amount) payable by the consignee to the consignor. It enables the consignor to record the consignment results and to know how much is still due from the consignee.

An Account Sales is a statement prepared and sent by the consignee to the consignor at intervals, giving full details of the goods sold, the gross sale proceeds, the consignee's expenses and commission, any advance, and the net balance due to the consignor along with the mode of its remittance.

This is a TS Inter 2nd-year (Telangana Intermediate) Accountancy term from the Consignment Accounts chapter; the TS treatment aligns with the NCERT/CBSE commerce curriculum.

Since the consignee sells goods on behalf of the consignor (as his agent), he has to render an account of his dealings. The Account Sales is that account. It usually shows: the quantity and value of goods sold and the sale price realised; the expenses incurred by the consignee on the consignment; the commission due to the consignee; any advance already paid to the consignor; and the net amount payable to the consignor, together with the bank draft or cheque by which it is remitted. The consignor uses the Account Sales to record sales, expenses and commission in his Consignment Account.

An Account Sales is the statement a consignee prepares and sends to the consignor giving full details of sales made, expenses met, commission charged and the net amount payable to the consignor.

It is the consignee's report of how he has dealt with the consigned goods. It lists the quantity and value of goods sold, any advance given, the consignee's expenses and commission, and finally the balance remitted to the consignor. On the basis of the Account Sales the consignor completes the entries in his Consignment Account.