Open App

B Com Exam > B Com Videos > Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy

Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy Video Lecture - B Com

FAQs on Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy Video Lecture - B Com

1. What is a consignment account in financial accounting?

Ans. A consignment account in financial accounting refers to an arrangement where one party (the consignor) sends goods to another party (the consignee) to sell on their behalf. The consignor retains ownership of the goods until they are sold, and the consignee earns a commission on each sale.

2. How does a consignment account work?

Ans. In a consignment account, the consignor sends goods to the consignee, who displays and sells the goods to customers. The consignee does not take ownership of the goods but acts as a middleman. The consignee keeps a record of the goods received, sold, and any expenses incurred. The consignor receives payment for the goods sold, and the consignee earns a commission on each sale.

3. What are the advantages of using a consignment account?

Ans. Using a consignment account has several advantages. Firstly, it allows the consignor to reach a wider market by utilizing the consignee's network. Secondly, the consignor can maintain control over their goods and reduce the risk of unsold inventory. Additionally, the consignee can earn a commission on sales, providing an incentive for them to actively promote and sell the goods.

4. What is the difference between consignment and normal sale?

Ans. The main difference between consignment and a normal sale is the ownership of the goods. In a normal sale, the buyer takes ownership of the goods immediately upon purchase. In a consignment, the consignor retains ownership of the goods until they are sold. Another difference is that in a normal sale, the seller receives the full payment for the goods, whereas in a consignment, the consignor receives payment for the goods sold after deducting the consignee's commission.

5. How is the consignee's commission calculated in a consignment account?

Ans. The consignee's commission in a consignment account is typically calculated as a percentage of the sales price. The specific percentage is agreed upon between the consignor and the consignee before the goods are sent. The commission is deducted from the sales proceeds, and the remaining amount is paid to the consignor. The commission percentage may vary depending on factors such as the nature of the goods, market conditions, and the agreement between the parties involved.

Related Exams

B Com

About this Video

	1.5K Views
	4.94/5 Rating
	Dec 19, 2024 Last updated

Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy for B Com2024 is part of B Com preparation. The notes and questions for Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy have been prepared according to the B Com exam syllabus. Information about Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy covers all important topics for B Com2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy.

Introduction of Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy in English is available as part of our B Com preparation & Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy in Hindi for B Com courses. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.

Description

Video Lecture & Questions for Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy Video Lecture - B Com - B Com full syllabus preparation | Free video for B Com exam.

Information about Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy

Here you can find the Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy defined & explained in the simplest way possible. Besides explaining types of Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy theory, EduRev gives you an ample number of questions to practice Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy tests, examples and also practice B Com tests.

Explore Courses for B Com exam

Signup for Free!

Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.

Start learning for Free

10M+ students study on EduRev

pdf

Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy Video Lecture - B Com

Free

MCQs

Summary

Objective type Questions

Semester Notes

Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy Video Lecture - B Com

shortcuts and tricks

video lectures

Extra Questions

practice quizzes

Important questions

past year papers

Viva Questions

ppt

Exam

Sample Paper

study material

Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy Video Lecture - B Com

mock tests for examination

Previous Year Questions with Solutions

;

Study Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy on the App

Students of B Com can study Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy alongwith tests & analysis from the EduRev app, which will help them while preparing for their exam. Apart from the Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy, students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc. The EduRev App will make your learning easier as you can access it from anywhere you want. The content of Consignment Account Introduction - Financial Accounting - B.COM/BBA/IPCC -By Saheb Academy is prepared as per the latest B Com syllabus.

Education Revolution