IndigoLearn
Forums
Consignment accounts
Goods sent on consignment is it a transaction or event??. As goods sent on consignment does not transfer it's ownership only possession is changed
Answers (6)
Event. When the consignor sends goods to the consignee, there is no need to create an accounting entry related to the physical movement of goods. It is usually sufficient to record the change in location within the inventory record keeping system of the consignor.
But we pass entries like Consignment to mr.x a/c ...Dr To Goods sent on consignment a/c Goods sent on consignment a/c .....Dr To purchases or trading a/c Can you please explain this to me? Thanks for the reply
But we pass entries like Consignment to mr.x a/c ...Dr To Goods sent on consignment a/c Goods sent on consignment a/c .....Dr To purchases or trading a/c Can you please explain this to me? Thanks for the reply
These are for control purposes and to track the transactions with consignee..... inventory is adjusted only when sale is made and trial balance is affected only for final sale and commission due
These are for control purposes and to track the transactions with consignee..... inventory is adjusted only when sale is made and trial balance is affected only for final sale and commission due
Thank you very much mam for timely reply and clarifying my doubt. Whether stock with consignee effects trial balance?? If you don't mine I have another doubt which is quite similar When bills receivable is sent for collection when record it even if no ownership is transferred in bills to bank and we consider bank as a debtor and debit bills sent for collection. Can you please explain this for me.
Thank you very much mam for timely reply and clarifying my doubt. Whether stock with consignee effects trial balance?? If you don't mine I have another doubt which is quite similar When bills receivable is sent for collection when record it even if no ownership is transferred in bills to bank and we consider bank as a debtor and debit bills sent for collection. Can you please explain this for me.
assuming bills will be honoured in due course. If they are dishonoured then we make appropriate entreis. Its like cheques deposited into bank
