Question

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

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

Answer 1

The correct option is B Consignment A/c

In the books of consignor, the expenses incurred by the consignee should be debited to the consignment account. These expenses have been incurred by the consignee in direct relation with the consignment, on behalf of the consignor. So, it is only correct to debit them in the consignment account which is prepared by the consignor.