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Consignment Accounts notes on meaning and features of consignment accounts, treatment of normal and abnormal loss and valuation of stock on consignment? QUESTION: What do you mean by Consignment? What are its salient features? CONSIGNMENT: Consignment is a specialized kind of transaction which involves the two parties i.e. Consignor and Consignee. In this the consignor…
DIFFERENCE BETWEEN JOINT VENTURE AND CONSIGNMENT The Difference between Joint Venture and Consignment is as follows: JOINT VENTURE Joint venture may be defined as temporary partnership between two or more persons without the use of firm’s name for a specific purpose and limited time period. In other words, two or more persons agree to undertake…
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The Difference between Normal and Abnormal loss is as follows: NORMAL LOSS Normal loss is the loss that occurs due to the nature of the goods consigned. Its nature is as follows: It occurs due to unavoidable reasons. It is due to natural causes such as losses due to evaporation, normal leakage, spoilage, breakdown, drying…
TREATMENT OF LOSS ON CONSIGNMENT In consignment, the goods are to be sent from one place to the other. There is always a possibility of some kind of loss of stock. The consignor has to bear the loss, not the consignee. The Treatment of loss on consignment is for two types of losses: NORMAL LOSS…
ACCOUNTING TREATMENT OF CONSIGNMENT Consignment is a specialized kind of transaction which involves the two parties i.e. Consignor and Consignee. In this the consignor dispatches the goods to the consignee and consignee is required to sell those goods. For this, the consignee gets a commission. Consignment is a nature of transaction that leads to the…
The Difference between Consignment and Sale is as follows: CONSIGNMENT Consignment is a specialized kind of transaction which involves the two parties i.e. Consignor and Consignee. In this the consignor dispatches the goods to the consignee and consignee is required to sell those goods. For this, the consignee gets a commission. Consignment is a nature…
