Distinguish between consignment and sale.

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Q. Distinguish between consignment and sale.

Telangana TsbieTSBIE Telangana Intermediate (2nd Year) Commerce Board 2022Subjective· 10mImportance★★★★★est

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Consignment is sending goods to an agent (consignee) who sells them on the owner's behalf - ownership stays with the consignor; a sale is an outright transfer of ownership to a buyer for a price. The relationship, risk, return of goods and accounting all differ.

Consignment means the consignor sends goods to the consignee to sell on the consignor's behalf for a commission, while a sale is a completed transfer of goods from seller to buyer. The main distinctions are:

Basis	Consignment	Sale
Ownership of goods	Remains with the consignor until the goods are sold by the consignee	Passes to the buyer as soon as the sale takes place
Relationship	Principal and agent (consignor - consignee)	Seller and buyer (creditor - debtor)
Risk	Borne by the consignor until sale	Borne by the buyer after sale
Return of goods	Unsold goods can be returned to the consignor	Goods cannot normally be returned unless agreed
Expenses	Consignee's expenses are reimbursed by the consignor	Buyer bears his own expenses
Account rendered	Consignee sends an Account Sales	No such statement; an invoice is issued

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set ANNUAL5 marks

Q. Distinguish the differences between the Consignment and Sale.

›Reveal solution

Consignment is sending goods to an agent for sale on the owner's behalf; the owner (consignor) keeps the ownership and risk until the goods are actually sold to customers. A sale transfers ownership and risk to the buyer immediately in exchange for price.

Differences between Consignment and Sale

Basis	Consignment	Sale
1. Ownership	Remains with the consignor until goods are sold to a third party	Passes to the buyer as soon as the sale takes place
2. Relationship	Principal and agent (consignor and consignee)	Seller (creditor) and buyer (debtor)
3. Risk	Borne by the consignor	Borne by the buyer after the sale
4. Return of goods	Unsold goods can be returned to the consignor	Goods are not normally returnable

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CBSE 2023Set ANNUAL5 marks

Q. Distinguish any five differences between the Consignment and Sales.

›Reveal solution

In a consignment the consignor remains the owner and the consignee only sells on his behalf as an agent (relationship of principal and agent), goods can be returned, risk stays with the consignor, and an account sales is sent; in a sale ownership passes to the buyer (relationship of seller and buyer), goods cannot normally be returned, risk passes to the buyer, and an invoice is issued.

This is a TS Inter 2nd-year (Telangana Intermediate) Accountancy consignment topic; the TS treatment aligns with the NCERT/CBSE commerce curriculum.

Consignment vs Sale

Basis of Difference	Consignment	Sale
Transfer of ownership	Ownership of goods remains with the consignor; it does not pass to the consignee	Ownership passes immediately from the seller to the buyer
Relationship between parties	Principal and agent (consignor and consignee)	Seller (creditor) and buyer (debtor)
Risk of goods	Risk remains with the consignor until the goods are sold	Risk passes to the buyer as soon as the sale is made
Return of goods	Unsold goods can be returned to the consignor	Goods sold cannot normally be returned unless agreed
Document sent	The consignee sends an "Account Sales" to the consignor	The seller sends an "Invoice" to the buyer

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CBSE 2018Set ANNUAL5 marks

Q. What are the differences between consignment and sale?

›Reveal solution

The key difference is ownership: consignment keeps ownership with the consignor (the consignee only sells as an agent), while a sale transfers ownership to the buyer. This drives every other difference — relationship, risk, right of return, expenses and who earns the profit.

Differences between Consignment and Sale

Basis	Consignment	Sale
Ownership of goods	Remains with the consignor until the goods are actually sold to a third party	Passes to the buyer immediately on sale
Relationship	Principal (consignor) and agent (consignee)	Seller and buyer
Risk	Borne by the consignor (except for agreed losses)	Borne by the buyer once the sale is complete
Return of goods	Unsold goods can be returned to the consignor	Goods are not normally returnable unless defective/agreed
Expenses	Consignor usually bears the expenses (directly or by reimbursing the consignee)	Buyer bears expenses after purchase
Statement rendered	Consignee sends an Account Sales	Buyer sends no such statement

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CBSE 2016Set ANNUAL5 marks

Q. What are the differences between consignment and sale?

›Reveal solution

Consignment and sale differ mainly in who owns the goods and who bears the risk. In consignment the consignor remains the owner until the consignee sells the goods to a third party; in a sale ownership and risk pass to the buyer the moment the sale is made.

Differences between Consignment and Sale

Basis	Consignment	Sale
Ownership	Remains with the consignor until the goods are sold to a third party	Passes to the buyer immediately on sale
Relationship	Principal and agent (consignor and consignee)	Seller and buyer
Risk	Borne by the consignor (except del-credere arrangements)	Borne by the buyer once sold
Return of goods	Unsold goods can be returned to the consignor	Goods are generally not returnable unless defective
Reward	Consignee earns a commission	Seller earns a profit
Expenses	Consignor usually bears/absorbs consignment expenses	Buyer bears expenses after purchase
Account rendered	Consignee sends an Account Sales	Buyer sends no such statement

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Q.Distinguish between consignment and sale.

Concept understanding — Consignment and Its Distinction from an Outright Sale

Consignment vs Sale

Q.Distinguish between consignment and sale.

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