Question

In the books of consignor, the expenses incurred by consignor 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 the consignor, the expenses incurred by the consignor should be debited to consignment account. These expenses have been incurred by the consignor in direct relation with the consignment. Hence, it is only correct to record them in the consignment account on account of consignment expenses.