MyQuestionIcon

2

You visited us 2 times! Enjoying our articles? Unlock Full Access!

Discount on Issue of Debentures

Discount char...

Question

Discount charges of Rs.1,000 on discounting a Bill Receivable accepted by consignee are debited to:

A

Consignor's Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Consignee's Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Consignment Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Profit & Loss Account

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Profit & Loss Account
Any expense borne by the agent personally, such expenses will not be debited to consignment A/c. Consignor will not make any entry for such expenses. These expenses will be debited to profit and loss account in the books of consignee.

Suggest Corrections

thumbs-up

0

Similar questions

Q. If consignor draws a bill on consignee and discounted it with the banker the discounting charges will be debited in ___________.

Q. In consignee book, the acceptance of bill of exchange by Consignee will be debited to ___________.

Q. When goods sent on consignment are sold by the consignee, the account to be debited is in the books of consignor.

Q. When the bill of exchange drawn by the Consignor is accepted by the Consignee which account will be credited in the books of the consignor?

Q. In the books of Consignee the expenses incurred by him on consignment are debited to ___________.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Issued at Par and Redeemed at Par

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Discount on Issue of Debentures

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon