Introduction to Consignment Accounting: Advance Journal Entries

This video tutorial covers additional transactions in consignment accounting, including discounting of bills receivable, handling goods returned by the consignee, and accounting for normal and abnormal losses. It also explains the treatment of goods in transit at the year-end. The tutorial emphasizes the roles of the consigner and consignee in these transactions and the relevant journal entries.

What is the entry in the consigner's books when a bill is discounted by the consignee?

• Bank account debit, To Consignment account

• Consignment account debit, To Bank account

• Bank account debit, Discount account debit, To Bills Receivable account

• Consignment account debit, To Discount account

When goods are returned by the consignee, which account is credited in the consigner's books?

• Consignment account

• Goods Returned account

• Consignee account

• Goods Sent on Consignment account

Who bears the expenses for returning goods in a consignment transaction?

• Neither Consigner nor Consignee

• Consignee

• Consigner

• Both Consigner and Consignee

How is normal loss treated in consignment accounting?

• It is recorded as a liability

• It is adjusted in the stock valuation

• It is recorded as an expense in the consigner's books

• It is ignored in the accounting records

What is the entry for abnormal loss due to fire in the consigner's books?

• Consignment account debit, To Insurance account

• Abnormal Loss account debit, To Insurance account

• Consignment account debit, To Abnormal Loss account

• Abnormal Loss account debit, To Consignment account

If an insurance claim is admitted but not yet received, which account is debited?

• Consignment account

• Cash account

• Insurance Claim Receivable account

• Abnormal Loss account

What is the entry for goods in transit at the end of the accounting period?

• Goods in Transit account debit, To Consignment account

• Consignment account debit, To Goods Sent on Consignment account

• Consignment account debit, To Goods in Transit account

• Goods in Transit account debit, To Goods Sent account

Where is the value of goods in transit shown in the consigner's financial statements?

• Statement of Changes in Equity

• Income Statement

• Cash Flow Statement

• Balance Sheet

Which of the following is NOT a type of stock shown in the consigner's balance sheet?

• Goods in transit

• Normal closing stock

• Stock on consignment

• Goods sold

What is the primary focus of the additional transactions discussed in the session?

• Additional transactions in consignment accounting

• Tax implications of consignment

• Basic journal entries

• Financial statement preparation