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unit-10-consignment-accounts-i

Unit-10 Consignment Accounts-I

Learn about various concepts relating to consignment and the basic framework of accounting for consignment transactions.

"Consignment is the same thing as sale". Discuss.




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Learning Pundits Content Team

Written on Apr 16, 2019 4:59:36 PM

  • When goods are sent by manufacturer or a trader to an agent to be sold by him on commission basis and at the risk and account of the former, they are said to be sent on consignment. In other words a producer/trader forwards his products to his selling agents, appointed at different places, to sell them on his behalf for an agreed commission.
  • The process of sending goods on this basis by one firm to another for sale is known as 'Consignment' and this transaction is called a 'Consignment Transaction'. The consignment is 'Outward Consignment' for the person who sends the goods and an 'Inward Consignment' for the person who receives the goods for sale.