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DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : CH. ANURADHA
Designation : Lecturer
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic for women,
Bheemunipatnam
Year/Semester : IV semester
Subject : Accountancy-III
Sub-code : CCP-402
Topic : CONSIGNMENT ACCOUNTS
Sub Topic : Accounting treatment in the books of
Consignee
Duration : 50 Minutes
Teaching aids : PPT, ANIMATION
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Recap

In the last class, we discussed about


 Journal Entries in the books of Consignee

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Objectives:

On completion of this period, you would be


able to:
 Understand the accounting treatment in the
books of consignee
 Open consignor’s a/c
 Post the journal entries in the consignor’s
account
 Close the account

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Accounting Treatment in the books of
Consignee

Consignee opens the following account

Consignor’s Account

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Consignor's Account

 Personal account in nature


 Shows balance due to Consignor

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Journal Entries

1. When goods received from the consignor

No entry is made in the books of consignee

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2. For expenses incurred by consignor

No entry is made in the books of consignee

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3. For Advance paid by the consignee to the
consignor

Consignor’s Dr.
To Cash/Bank/Bills payable a/c
(Being the advance paid )

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Posting:

Dr. Consignor’s account Cr.


Date Particulars L. Amt Date Particu L. Amt
F. Rs. lars F. Rs.
To Cash/Bank/ xxx
Bills payable a/c
(Advance paid)

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4. For expenses incurred by consignee
Consignor’s Dr.
To Cash/Bank a/c
(Being the expenses incurred )

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Posting:

Dr. Consignor’s account Cr.


Date Particulars L. Amt Date Particulars L. Amt
F. Rs. F. Rs.
To Cash/Bank a/c
(consignee’s expenses)

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5. When consignee sells good
Cash/Bank a/c Dr.
To consignor’s a/c
(Being the cash and credit sales)

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Posting:

Dr. Consignor’s account


Cr.
Date Particulars L. Amt Date Particulars L. Amt
F. Rs. F. Rs.
By cash/bank a/c
(cash sales)

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6. When commission on sales is due
Consignor’s a/c Dr.
To Commission a/c
(Being the commission receivable)

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Posting:

Dr. Consignor’s account Cr.

Date Particulars L. Amt Date Particulars L. Amt


F. Rs. F. Rs.
To commission a/c

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7. Closing the consignor’s a/c by final
remittance to consignor
Consignor’s a/c Dr.
To Cash/Bank/Bills Payable a/c
(Being the final balance remitted to consignor)

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Posting:

Dr. Consignor’s account Cr.


Date Particulars L. Amt Date Particulars L. Amt
F. Rs. F. Rs.
To bank a/c xxx xxx
(balance remitted)

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Summary

In this class, we discussed about


 Accounting treatment in the books of consignee
 Open consignor’s a/c
 Post the journal entries in the consignor accounts
 Close the account

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Quiz

1. Which of the following accounts is opened in the


books of consignee?
a) Consignee Account
b) Consignor Account
c) Goods Account
d) Bank Account

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Quiz

1. Consignor’ s Account shows


a) Profit due to consignor
b) Balance due to consignor
c) Balance due to consignee
d) Profit due to consignee

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Quiz

1. Consignor’s account is
a) Nominal account
b) Personal account
c) Real account
d) None of the above

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Assignment

Write the format of Consignor’s Account in the books


of Consignee

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