Question

In the books of consignor , the expenses incurred by consignee should be debited to -

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

Answer 1

The correct option is B Consignment A / c

In the books of the consignor, the expenses incurred by the consignee should be debited to the consignment account. This is because the consignee incurs these expenses on behalf of the consignor on account of consignment and thus, they should be added to the cost of goods sent on consignment by debiting them in the consignment account.