{"id":2489,"date":"2019-09-26T13:23:29","date_gmt":"2019-09-26T13:23:29","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2489"},"modified":"2019-09-26T13:23:29","modified_gmt":"2019-09-26T13:23:29","slug":"consignment","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/consignment\/","title":{"rendered":"CONSIGNMENT ACCOUNTING"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/consignment\/#MEANING\" title=\"MEANING\">MEANING<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/consignment\/#FEATURES_OF_CONSIGNMENT\" title=\"FEATURES OF CONSIGNMENT\">FEATURES OF CONSIGNMENT<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/consignment\/#LEGAL_RELATIONSHIP\" title=\"LEGAL RELATIONSHIP\">LEGAL RELATIONSHIP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/consignment\/#_TERMINOLOGY\" title=\"&nbsp;TERMINOLOGY\">&nbsp;TERMINOLOGY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/consignment\/#RISK\" title=\"RISK\">RISK<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/consignment\/#CONSIDERATION\" title=\"CONSIDERATION\">CONSIDERATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/consignment\/#RELATIONSHIP_OF_AGENT_AND_PRINCIPAL\" title=\"RELATIONSHIP OF AGENT AND PRINCIPAL\">RELATIONSHIP OF AGENT AND PRINCIPAL<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/consignment\/#OWNERSHIP_AND_POSSESSION\" title=\"OWNERSHIP AND POSSESSION\">OWNERSHIP AND POSSESSION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/consignment\/#_ECONOMICAL_WAY_OF_DOING_BUSINESS\" title=\"&nbsp;ECONOMICAL WAY OF\nDOING BUSINESS\">&nbsp;ECONOMICAL WAY OF\nDOING BUSINESS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/commerceiets.com\/consignment\/#TERMS_AND_CONDITIONS\" title=\"TERMS AND CONDITIONS\">TERMS AND CONDITIONS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/commerceiets.com\/consignment\/#CONSIGNMENT_EXPENSES\" title=\"CONSIGNMENT EXPENSES\">CONSIGNMENT EXPENSES<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/commerceiets.com\/consignment\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"wp-block-heading\" id=\"meaning\"><span class=\"ez-toc-section\" id=\"MEANING\"><\/span><strong>MEANING<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p class=\"has-medium-font-size\">Consignment is a specialized kind of transaction which\ninvolves the two parties i.e. Consignor and Consignee. In this the consignor\ndispatches the goods to the consignee and consignee is required to sell those\ngoods. For this, the consignee gets a commission. Consignment is a nature of\ntransaction that leads to the expansion of business. The legal relationship between\nthe consignor and consignee is of the agent and the principal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"features-of-consignment\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_CONSIGNMENT\"><\/span>FEATURES OF CONSIGNMENT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">The following are the features of the consignment:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"legal-relationship\"><span class=\"ez-toc-section\" id=\"LEGAL_RELATIONSHIP\"><\/span>LEGAL RELATIONSHIP<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Consignment transaction is a result of the legal\nrelationship between the two parties. Both the parties enter into an agreement\nto carry out the transactions of sale and purchase.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"terminology\"><span class=\"ez-toc-section\" id=\"_TERMINOLOGY\"><\/span>&nbsp;TERMINOLOGY<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The terminology under the consignment is as follows:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>CONSIGNOR: <\/strong>The consignor is the person who dispatches the goods to the another party for sale.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>CONSIGNEE:<\/strong> The consignee is the person to whom the goods are dispatched by the consignor for the sales.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>PROFORMA INVOICE:<\/strong> The consignor sends the goods to the consignee along with a statement known as Proforma Invoice. It is a memorandum record for the reference of the consignor and the consignee. It contains the details regarding the:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Quantity of goods consigned<\/li><li>Quality of goods consigned<\/li><li>Price of the goods, etc.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">The main purpose of this document is to serve as a proof of the transaction. It also serves as prime document for customs clearance. The format of Proforma invoice is as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide4-4.jpg\" alt=\"consignment\" class=\"wp-image-2494\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide4-4.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide4-4-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide4-4-768x576.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ACCOUNT SALES: <\/strong>An account sales is a statement which is sent by the consignee to the consignor. It shows all the details regarding:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Quantity of goods sold.<\/li><li>Price charged from customers<\/li><li>Expenses of consignee.<\/li><li>Amount of commission due from consignor<\/li><li>Advance received from consignor, etc.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">On the basis of account sales, the transactions are recorded\nby the consignor in his books.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The format of account sales is as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide5-3.jpg\" alt=\"Consignment\" class=\"wp-image-2496\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide5-3.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide5-3-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide5-3-768x576.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>CONSIGNMENT OUTWARD: <\/strong>To the consignor, the consignment of goods is known as Consignment Outward.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>CONSIGNMENT INWARD:<\/strong> To the consignee, the consignment of goods is known as Consignment Inward.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"risk\"><span class=\"ez-toc-section\" id=\"RISK\"><\/span><strong>RISK <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The risk of the goods consigned remains with the consignor\nonly till the goods is sold by the consignee. As the sales are made by the\nconsignee, the risk associated with goods transfer to the buyer as he is then\nthe owner of the goods.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"consideration\"><span class=\"ez-toc-section\" id=\"CONSIDERATION\"><\/span>CONSIDERATION <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The consignee sells the goods on behalf of the consignor for\nthe consideration known as Commission. The commission is of three types:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ORDINARY OR NORMAL COMMISSION: <\/strong>This commission is paid for the ordinary sale services provided by the consignee to the consignor. It is calculated as fixed percentage of the total sales made.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>DEL-CREDRE COMMISSION:<\/strong> This is a special type of commission paid by the consignor to the consignee when the consignee agrees to bear loss on account of bad debts resulting from credit sales. This is the additional commission and is provided other than ordinary commission. Thus, where the consignee gets del-credre commission, he guarantees the payment from the debtors. This commission is calculated as a percentage of the gross sales or credit sales, whatever is agreed between the parties.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>OVER-RIDING COMMISSION:<\/strong> It is an extra commission allowed to the consignee in addition to the normal commission. This commission is provided to the consignee to fulfill two kinds of objectives:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>To motivate the consignee to boost the sales of\nsome new product<\/li><li>To ensure that the goods are sold by the\nconsignee at the highest possible price.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">Generally, this commission is calculated on the surplus sale proceeds realized as a result of selling the goods over and above the minimum sale price fixed by the consignor.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"relationship-of-agent-and-principal\"><span class=\"ez-toc-section\" id=\"RELATIONSHIP_OF_AGENT_AND_PRINCIPAL\"><\/span>RELATIONSHIP OF AGENT AND PRINCIPAL<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">In the consignment, the relationship of consignor and\nconsignee is of principal and agent. The consignee sells the goods on behalf of\nthe consignor to get the commission in consideration.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"ownership-and-possession\"><span class=\"ez-toc-section\" id=\"OWNERSHIP_AND_POSSESSION\"><\/span>OWNERSHIP AND POSSESSION<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In case of the consignment, the possession of the goods only\nis transferred to the consignee not the ownership. The ownership of the goods\nremains with the consignor only.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"economical-way-of-doing-business\"><span class=\"ez-toc-section\" id=\"_ECONOMICAL_WAY_OF_DOING_BUSINESS\"><\/span>&nbsp;ECONOMICAL WAY OF\nDOING BUSINESS<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Consignment is an economical way of doing the business. With\nthe help of the agent known as consignee, a large geographical area can be\ncovered easily to sell the goods far off places. Also the consignor is not\nbound to incur the heavy expenses to open the branch in various areas.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"terms-and-conditions\"><span class=\"ez-toc-section\" id=\"TERMS_AND_CONDITIONS\"><\/span>TERMS AND CONDITIONS<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The following are the terms and conditions of the\nconsignment transaction:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The goods consigned to the agent remains the\nproperty of the consignor.<\/li><li>The agent sell the goods on the risk of the\nprincipal.<\/li><li>All expenses incurred by the agent on goods\nconsigned to him are paid by the principal.<\/li><li>The agent is expected to take the reasonable\ncare of the goods.<\/li><li>The agent is not liable to make the payment for\nthe good until these are sold.<\/li><li>The agent is entitled to get commission at a\nfixed percentage on the total sales made.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"consignment-expenses\"><span class=\"ez-toc-section\" id=\"CONSIGNMENT_EXPENSES\"><\/span>CONSIGNMENT EXPENSES<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">When the goods are sent on the consignment, certain expenses\nare incurred called consignment expenses. These expenses may be incurred by the\nconsignor as well as consignee. These expenses are of two types:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>NON-RECURRING EXPENSES:<\/strong> Non- recurring expenses are those expenses which are incurred by the consignor or consignee to bring the goods to their present condition and location. It means these are the expenses are incurred for bringing the goods from the place of the consignor to the consignee. These expenses will increase the value of the goods. Examples of these expenses are as follows:<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Incurred by Consignor:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Carriage <\/li><li>Freight<\/li><li>Dock Dues<\/li><li>Landing Charges<\/li><li>Loading Charges<\/li><li>Transit Insurance<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">Incurred by Consignee:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Unloading Charges<\/li><li>Dock Dues<\/li><li>Import Duty<\/li><li>Octroi <\/li><li>Carriage etc.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>RECURRING EXPENSES:<\/strong> Recurring Expenses are those expenses being direct expenses are added to the cost of the consignment so as to arrive at the cost price of goods at the time of the sale. These expenses are also taken into consideration while valuing unsold stock on consignment.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Incurred by Consignor:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Bank charges or commission on discounting of\nbills.<\/li><li>Expenses incurred on damaged goods received\nback.&nbsp;&nbsp;&nbsp;&nbsp; <\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">Incurred by Consignee:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Godown Rent<\/li><li>Insurance of goods<\/li><li>Carriage on sales<\/li><li>Advertising<\/li><li>Brokerage&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"conclusion\"><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span>CONCLUSION<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">The consignment transaction helps the consignor to sell his goods far off places with the help of the agent or the consignee. The consignor send the Proforma invoice along with the goods dispatched and the consignee sends the account sales stating all the details regarding the goods sold etc.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting\/\"><strong>Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/non-profit-organisation\/\"><strong>Non profit organisation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation\/\"><strong>Depreciation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liquidity-ratios-types\/\"><strong>Liquidity ratios<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/nature-of-accounting\/\"><strong>Nature of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/receipt-and-payment-account-pdf\/\"><strong>Receipts and Payments Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation-accounting\/\"><strong>Depreciation Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/acid-test-ratio-formula\/\"><strong>Acid Test Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/benefits-of-accounting\/\"><strong>Benefits of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/hire-purchase-accounting-notes-pdf\/\"><strong>Hire Purchase Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cash-ratio\/\"><strong>Cash Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-cost-accounting-and-financial-accounting\/\"><strong>Difference between cost accounting and financial accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\"><strong>Financial accounting, cost accounting and management accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-hire-purchase-and-instalment\/\"><strong>Difference between hire purchase and instalment system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/financial-ratio-analysis\/\"><strong>Financial ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-transaction-and-event\/\"><strong>Difference between transaction and event<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/transactions\/\"><strong>Transactions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/users-of-accounting\/\"><strong>Users of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/current-ratio-formula\/\"><strong>Ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limitations-of-accounting-2\/\"><strong>Limitation of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-expenditure\/\"><strong>Capital Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/instalment-system\/\"><strong>Instalment System<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-consignment-and-sale\/\"><strong>Difference between consignment and sale<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/book-keeping\/\"><strong>Book Keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-expenditure\/\"><strong>Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Reserves Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-normal-and-abnormal-loss\/\"><strong>Abnormal loss vs normal loss in consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accountancy\/\"><strong>Accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-expenditure-and-revenue-expenditure\/\"><strong>Difference between capital and revenue expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Provisions&nbsp;<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/treatment-of-loss-on-consignment\/\"><strong>Treatment of loss on consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting as science or an art<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-equation\/\"><strong>Accounting Equation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/single-entry-system-in-accounting\/\"><strong>Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-consignment\/\"><strong>Accounting treatment of consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book Keeping vs accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/deferred-revenue-expenditure\/\"><strong>Deferred Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/statement-of-affairs-and-balance-sheet-difference\/\"><strong>Difference between statement of affairs and balance sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-consignment\/\"><strong>Joint venture vs consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book keeping vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-receipt\/\"><strong>Capital receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/ifrs\/\"><strong>IFRS<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/departmental-accounting\/\"><strong>Departmental Accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-receipt\/\"><strong>Revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/balance-sheet\/\"><strong>Balance Sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-departmental-accounting\/\"><strong>Methods of departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/basis-of-accounting\/\"><strong>Basis of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-and-revenue-receipt\/\"><strong>Difference between capital and revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/profit-and-loss-account\/\"><strong>Profit and loss Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-of-expenses-in-departmental-accounting\/\"><strong>Allocation of expenses in departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/branches-of-accounting\/\"><strong>Branches of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Difference between accounting concepts and conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/trading-account\/\"><strong>Trading Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-departmental-transfers\/\"><strong>Inter-departmental transfers<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cash-and-mercantile-system-of-accounting\/\"><strong>Cash and mercantile system of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-standards\/\"><strong>Accounting Standards<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/voyage-account\/\"><strong>Voyage Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/different-types-of-branches\/\"><strong>Different types of branches<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-principles\/\"><strong>Accounting Principles<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-accounting\/\"><strong>Objectives of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-for-incomplete-voyage\/\"><strong>Accounting for Incomplete Voyage<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-departmental-and-branch-accounting\/\"><strong>Departmental vs Branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/golden-rules-of-accounting\/\"><strong>Golden ru\nles of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-accounting\/\"><strong>Process of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-venture\/\"><strong>Joint venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/\"><strong>Methods of branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/double-entry-system-of-accounting\/\"><strong>Double entry system of book keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-partnership\/\"><strong>Joint Venture Vs Partnership<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incorporation-of-branch-trial-balance\/\"><strong>Incorporation of branch trial balance<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-double-single-entry-system\/\"><strong>Double entry vs Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Accounting Concepts vs Accounting conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-recording-transactions-in-joint-venture\/\"><strong>Methods of recording transactions in Joint Venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/garner-vs-murray-rule\/\"><strong>Garner VS Murray Rule<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/history-of-accounting-pdf\/\"><strong>History of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-provisions-and-reserves\/\"><strong>Difference between provisions and reserves<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consignment\/\"><strong>Consignment<\/strong><\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>MEANING 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 expansion of business&#8230;.<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/consignment\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;CONSIGNMENT ACCOUNTING&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2499,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[165],"class_list":["post-2489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-accounting","tag-features-of-consignment"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2489"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2499"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}