Consignment Accounting Video Lecture - CA Foundation

concept so what is consignment tell us
first just understand with an example
let us say looked up in Mumbai okay she
has a business in garments in Mumbai
maybe she wants to sell her goods in let
us say Kanpur but she really doesn't
want to open a branch or open a shop etc
at the same time she would like to sell
her goons there may be tests and see if
her goods if these garments will sell
him come she therefore contacts her
friend let us say Kanta in comfort okay
and sense goods worth rupees 1 lakh
let us say there are 100 cartons of
garments costing thousand each so Luca
has sent 1 lakh worth of goods to kondeh
why has booked us in these goods to
Kanta because both the wants to sell
these Goods income so Kanta is supposed
to sell the goods for Luca in Kanpur and
count up for this will be given a
commission so the goods actually belong
to muta buchta is not selling the goods
to counter but Luca is only sending the
goods to Kanta
so that kalter can sell these Goods on
behalf of maka
what does Cantor get for this contra
gets a commission now for transporting
the goods there might be transport
expenses of consignor let us say of
rupees 10000 having done this it is
possible
that Kanta receives the goods and needs
to transport the goods to her warehouse
or go down her warehouse or her shop
maybe she incurs another rupees 5000 as
transportation cost it is also possible
that in order to store these goods she
in cursed another rupees 5000 as go down
range so now you have Mata who has sent
the goods is the sender or is called the
consignor you have Kanta who receives
the goods the receiver of the goods also
called a consign me so the sender is the
consignor the receiver is the consigning
and the goods these goods are called the
scartelli these goods are actually
called consignment the consignor incurs
some expenses the consigning also incurs
some expenses the consignee is usually
reimbursed for the expenses for his
expenses for selling the goods the
consigning is entitled to a commission
which is normally based as a percentage
of 6 this in brief would be the concept
of consignment so what is consignment
consignment is the sending of goods by
one person the consignor to another
person the consign me so that the
consigning can sell the goods for and on
behalf of the consignor so sending of
the quotes by the consignor to the
consigning so that the consigning can
sell the goods for for and on behalf of
the consignor so there is no transfer of
ship or risk there is no transfer of
ownership of the goods the goods
continue to belong to the consignor
these are all consigners goods but
physically physically the goods are now
lying and the promises of the
consignment but whose stock is that
whose goods is that it if they are all
continued to be consigners goods so the
relationship between the consignor and
the consignee is that of a principal and
an agent the agent will do as directed
by the principal and for doing this for
rendering of these services the agent
gets a commission the agent gets a
commission if they can signee the agent
incurs any expenses usually these are
reimbursed by the consignor reimbursed
by the consumer so what is consignment
consignment is the sending of goods mind
you not sale of goods the sending of the
goods by the consignor to the consigned
by one person that is the consignor to
another person the consign Li so that
the consigning can sell the goods on
behalf of the consignor for a commission
there is no transfer of property when
goods are solved by the consign Li only
then property only then the title of
ownership is transferred today I will be
met buyer if the consign II
incurs any expenses these are also
reimbursed by the consignment the
relationship between the consignor and
that of the consign II is that of a
principal and an agent