Soru

Zorluk: OrtaPreparation of Consignment and Consignee Accounts in Consignor's Books

Match each consignment transaction recorded in the consignor's books on the left with its correct double-entry posting on the right:

  • Goods dispatched to the consignee at cost priceDebit Consignment Account, Credit Goods Sent on Consignment Account
  • Direct expenses paid by the consignor for freight and insuranceDebit Consignment Account, Credit Cash/Bank Account
  • Del-credere commission payable to the consignee for selling goodsDebit Consignment Account, Credit Consignee's Personal Account
  • Advance payment received from the consignee via a bill of exchangeDebit Bills Receivable Account, Credit Consignee's Personal Account

Cevap

Goods dispatched matches Debit Consignment Account and Credit Goods Sent on Consignment Account; Direct expenses paid by consignor matches Debit Consignment Account and Credit Cash/Bank Account; Del-credere commission payable matches Debit Consignment Account and Credit Consignee's Personal Account; Advance payment received matches Debit Bills Receivable Account and Credit Consignee's Personal Account.
In the consignor's ledger, the Consignment Account is debited with all costs (cost of goods sent, direct handling expenses, and consignee commissions). The Consignee's Personal Account is credited with advance payments received (such as bills receivable) and commissions earned by the agent.

Adım Adım Çözüm

1
Identify the posting for goods dispatched by consignor
Debit Consignment Account and Credit Goods Sent on Consignment Account
The Consignment Account acts as a nominal account accumulating all consignment costs.
2
Identify the posting for direct carriage and freight expenses paid by consignor
Debit Consignment Account and Credit Cash/Bank Account
Direct expenses incurred by the consignor increase consignment cost and involve cash outlay.
3
Identify the posting for commission earned by consignee
Debit Consignment Account and Credit Consignee's Personal Account
Commission is a consignment expense payable to the agent, creating a credit balance in the consignee's personal account.
4
Identify the posting for an advance received by bill of exchange
Debit Bills Receivable Account and Credit Consignee's Personal Account
Receiving an advance creates an asset (Bills Receivable) while reducing the consignee's obligation.

Anahtar Kavram

Double Entry Rules for Consignment and Consignee Ledger Accounts in Consignor's Books
Bu soruyu puanla