Consignment Accounting Problem Solving: Ledger Accounts and Transactions

The video tutorial covers consignment accounting, focusing on preparing ledger accounts for consigner and consignee. It explains the process of posting entries for sales, commissions, and expenses, and highlights the calculation of closing stock without quantity data. The tutorial concludes with balancing accounts and discussing the implications of Dell Credit Commission and bad debts.

Who is the consigner in the given consignment scenario?

• Ryan Company

• Buddha Parties

• Royal Company

• Karan

What is the commission rate Karan receives on sales?

• 3% ordinary commission and 2% del credere commission

• 4% ordinary commission and 1% del credere commission

• 5% ordinary commission and 1% del credere commission

• 4% ordinary commission and 2% del credere commission

Which account is credited when cash sales are recorded in the consigner's books?

• Consignment Account

• Karan Account

• Sales Account

• Cash Bank Account

How is the cost of goods sold calculated for cash sales?

• Selling price divided by 150 and multiplied by 100

• Selling price divided by 100 and multiplied by 125

• Selling price divided by 125 and multiplied by 100

• Selling price divided by 100 and multiplied by 150

What is the closing stock value calculated in the consignment?

• 60,000

• 50,000

• 30,000

• 40,000

In the absence of settlement instructions, what happens to the balance in the consignee's account?

• It is written off as a loss

• It is transferred to the consigner

• It is recorded as a profit

• It is carried forward

What happens to bad debts when a del credere commission is involved?

• They are ignored

• They are borne by the consignee

• They are borne by the consigner

• They are shared equally

What is the net gain for the consignee after accounting for commissions and bad debts?

• 9,000

• 8,250

• 7,500

• 10,000

Which account records the total commission payable to the consignee?

• Royal Company Account

• Profit and Loss Account

• Consignment Account

• Karan Account

What is the primary reason for preparing separate accounts for normal and del credere commissions?

• To simplify calculations

• To separate income from different responsibilities

• To avoid tax complications

• To ensure accurate stock valuation