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Consignment Accounts

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

In consignment, sender of goods is called _________________.

a)

Consignee

b)

Consignor

c)

Debtor

d)

Creditor

2.

Commission on consignment is _________ to consignee.

a)

Expense

b)

Loss

c)

Income

d)

Asset

3.

Select two or more correct options:

Consignment expenses are incurred by

a)

Consignee

b)

Consignor

c)

Debtor

d)

Creditor

4.

Select two or more correct options:

These are the important ledger accounts in the books of Consignor.

a)

Consignment Account

b)

Consignee Account

c)

Bills Receivable Account

d)

Bad Debts Account

5.

Consignee has to prepare a statement to consignor which shows affairs relating to the consignment.

a)

Invoice

b)

Sight Draft

c)

Account Sales

d)

Cheque

6.

Another name to which the consignor is called

a)

Consignee

b)

Principal

c)

Retailer

d)

Customer

7.

Is consignment the same as making a sale?

a)

True

b)

False

8.

Which of the following correctly defines DEL CREDERE COMMISSION?

a)

Additional payment to the consignee over and above regular commission

b)

Document sent by the consignee to the consignor giving details of the sales commission

c)

remuneration for services performed by the consignee as a commission

d)

When goods are sent to an agent as commission

9.

Which of the following is correct?

a)

The Consignor is the person who owns the goods and sends them to the agent

b)

The Consignor is the person who receives and sells the goods

c)

The Consignor is the person who receives the a del credere commission

d)

The Consignor is the agent who sells the goods

10.

P. Taylor, a consignee, submitted an Account Sales to Terry’s Wholesalers, a consignor,

showing that he had sales of 300 items at $25 each, Landing Charges $680, Duties and

Taxes $1 200 and a 5% commission. How much should be indicated as the amount due

to Terry’s Wholesalers? (BGCSE 2005)

a)

$5 245

b)

$5 620

c)

$7 125

d)

$7 500