Match each consignment ledger account or balance in the consignor's books on the left with its correct closing treatment or financial statement presentation on the right:
- Goods Sent on Consignment Account closing balanceTransferred to the Trading Account (or Purchases Account) of the consignor
- Consignment Account credit balance (credit exceeds debit)Transferred to the General Profit and Loss Account as profit on consignment
- Consignment Stock Account balance at year-endIncluded as a current asset in the consignor's Balance Sheet
- Consignee's Personal Account debit balance after sales settlementReported as an amount due from agent under current assets in the consignor's Balance Sheet
Answer
Matching pairs: Goods Sent on Consignment Account closing balance → Transferred to the Trading Account (or Purchases Account); Consignment Account credit balance → Transferred to the General Profit and Loss Account as profit on consignment; Consignment Stock Account balance at year-end → Included as a current asset in the consignor's Balance Sheet; Consignee's Personal Account debit balance → Reported as an amount due from agent under current assets in the consignor's Balance Sheet.
Each ledger balance in the consignor's books has a distinct year-end accounting treatment: Goods Sent on Consignment is closed to Trading Account; net consignment profit goes to General Profit & Loss; unsold consignment stock is a current asset; and any unpaid balance on the consignee's personal account is a current asset receivable.
Step-by-Step Solution
Key Concept
Final accounting treatment and financial statement presentation of consignment ledger accounts in consignor's books