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

The correct option is C Consignor's A/c

In the books of the consignee, the expenses incurred by him on consignment are debited in the consignor's account as these expenses are borne by the consignor. The consignee incurs such expenses on behalf of the consignor as he acts as an agent to the principal (consignor).