Question

In the books of Consignee the expenses incurred by him on consignment are debited to -

• A. Consignment A / c
• B. Cash A / c
• C. Consignor's A / c
• D. Expense A / c

Answer 1

Answer: (C)

Consignor's A / c

In the books of consignee, the expenses incurred by him on consignment are debited to the consignor's A/c. This is because the consignee incurs these expenses on behalf of the consignor and hence, charges these expenses to the consignor's A/c.