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 for discounting of bills receivable accepted by the consignee?

How does the consigner record the discounting of a bill in their books?

What entry is made when goods are returned by the consignee?

How does the consigner account for expenses incurred by the consignee?

Explain the treatment of normal loss in consignment accounting.

What is the difference between normal loss and abnormal loss?

How should abnormal loss be recorded in the books of the consigner?

What entry is made when an insurance claim for abnormal loss is received?

What are the implications of the consignee not passing any entry for abnormal loss?

Describe the accounting treatment for goods in transit.