Question

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

• A. Trading A/c
• B. Consignor A/c
• C. Balance Payable A/c
• D. Consignee A/c

Answer 1

The correct option is B Consignor A/c

In consignee's books, the bill of exchange accepted by consignee will be debited to the consignor's account as it is being used to pay the receipts of sale to the consignor by the consignee, in place of cash or bank transfer. So, the amount will be debited against the credit balance payable to the consignor.