Which of the following items is not credited to consignment account in the books of the consignor?

Cash sales by consignee

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Credit sales by consignee

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Consignment Stock

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Stock Reserve

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Solution

The correct option is D Stock Reserve
Stock reserve is not credited to consignment account in the books of the consignment.The transactions relating to consignment are recorded in such a way that the profit or loss of each consignment can be ascertained separately. It requires the preparation of a special account known as consignment account.

A consignment account is a nominal account prepared to find out the profit or loss of a consignment. The account is debited with the cost of goods sent, expenses incurred by the consignor and consignee, and the commission due to the consignee. But the account is credited with the amount of sales affected and also with closing stock, if any. The balance of this account is either profit or loss.

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Q. To record credit sale, when del-credere commission is not given which of the following entry is passed in the books of Consignor?

A.Consignment Debtors A/c To Consignment A/c	Dr.
B.Consignee A/c To Consignment A/c	Dr.
C.Consignment Debtors A/c To Consignee A/c	Dr.
D. Consignment Debtors A/c To Sales A/c	Dr.

Q. To record credit sale, when del-credere commission is given which of the following entry is passed in the books of Consignee?

A. Consignment Debtors A/c To Consignor A/c	Dr.
B. Consignor A/c To Sales A/c	Dr.
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D. No entry is required to be passed.

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Trial balance of Sagar did not agree. It showed an excess credit Rs 7,550. Sagar put the difference to suspense account. He located the following errors-

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Q. Rectify the following errors found in the books of Mr. Suhail by passing entries:
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