Consignment Account: Preparation of Consignment Account

CONTENT:  Preparation of Consignment accounts

Entries in the Consignor’s Book

A. On dispatch of goods

DR Consignment account (with the cost of goods)

CR Goods on consignment account (with the cost of goods)

B. Expenses paid by Consignor

DR Consignment account (with the amount paid)

CR Cash/Bank (with the amount paid)

C. Upon drawing bill on consignee

DR Bills receivable account

CR Consignee’s personal account

D. Bills receivable honoured by the consignee

DR Bank account

CR Bills receivable account

E. Advance by consignee

DR Bank account

CR Consignee account

F. Expenses incurred by the consignee

DR Consignment account

CR Consignee account

G. On proceeds from sales

DR Consignee account

CR Consignment account

H.