Question

The nature of the consignment account is _____________.

• A. Capital A/c
• B. Revenue A/c
• C. Realisation A/c
• D. Bank A/c

Answer 1

Answer: (B)

Revenue A/c

Goods sent on Consignment Account is a real account. It is closed up by transferring its balances to trading accounting. It shall be shown on credit side of trading account. For each consignment these sets of accounts will be prepared separately.

Consignment is hence Revenue account as revenue are generated from consignment.