Video on
Books of Consignment accounting
Last Updated On: 27-Oct-2021Posted On: 27-Oct-2021
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Topics Covered in this Video:- [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=0s]00:00[/url] Introduction [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=17s]00:17[/url] What is a consignment [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=400s]06:40[/url] Books of the consigner [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=1571s]26:11[/url] Example of consignment [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=1815s]30:15[/url] Valuation of closing stock [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=2938s]48:58[/url] Valuation of abnormal loss [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=4358s]01:12:38[/url] Questions of consignment [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=5350s]01:29:10[/url] Normal loss [url=https://www.youtube.com/watch?v=AByER6G9FeM&t=6639s]01:50:39[/url] Types of commission Topic Covered: Introduction to Consignment Valuation of closing stock Valuation of abnormal loss Question of Consignment Account Treatment of normal loss Types of commission Goods sent on invoice price loading questions based on Consignment concept Illustration of ICAI Meaning and Features of Consignment Consignment is a process under which the owner consigns/handovers his materials to his agent/salesman for the purpose of shipping, transfer, sale etc. Following are the points that throw more light on the nature and scope of a consignment − 1. Here, ultimate ownership of the goods remains with the manufacturer or whole seller who handovers goods to his agent for sale on a commission basis. Consignment is merely a transfer of possession of goods, not ownership. Since the ownership of goods remains with the manufacturer (consignor), the consignee (agent) is not responsible for any loss or destruction of goods. 2. The goods are sold on the owner’s risk and hence, profit/loss goes to the owner. 3. Consignee only gets reimbursement of expenses incurred by him and commission on sale made by him, because sale that proceeds, belongs to the owner (consignor). Following are the reasons that explain why consignment is not a sale − 1. Ownership − Ownership of goods need to be transferred from seller to buyer in case of a sale, but ownership of goods remains with the consignor, till the goods are sold by the consignee. 2. Risk − In case of a consignment, normally, the risk remains with the consignor in the event of goods being lost or destroyed. 3. Relationship − The relation between a seller and a buyer will be of debtor and creditor in the case where goods are sold on credit basis. On the other hand, the relationship between a consignor and a consignee is that of principal and agent. 4. Goods Return − Usually, the sold goods cannot be returned back; however, if there is any manufacturing defect or any other technical fault, the seller is obliged to take them back. On the other hand, the consignee may return the unsold stock of goods to consignor anytime. Grooming education academy is engaged in providing qualitative commerce education to society at concessional prices. We believe in Research, reasoning and result and thus our learners admit our USP of: "Pioneer in developing concepts". We provide the complete tutorials for all commerce courses including CA, CS, CMA, BCom, BBA, Mcom, MBA, M.com, Class 12, Class 11 and other commerce courses.
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