When the consignee receives the goods from the consignor, in the books of consignee __________________.

Goods are debited to goods received on consignment account

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No entry is to be passed

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Credits consignor's personal account

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Debits Purchases A/c

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Solution

The correct option is B No entry is to be passed
No entry is made in the books of account. The consignee is not the owner of the goods and therefore he makes no entry when he receives the goods. The consignor's account will be closed by debiting it with cash or final bill or draft in settlement.

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