Accounting for consignment

Multiple choice questions (MCQs) Quiz

Your answer is incorrect. The correct answer is “principal and agent” (option 4).

Your answer is incorrect. The correct answer is “sold” (option 3).

Your answer is incorrect. The correct answer is “the consignor only” (option 2).

Your answer is incorrect. The correct answer is “nominal” (option 1).

Your answer is incorrect. The correct answer is “total of both cash and credit sales” (option 3).

Your answer is incorrect. The correct answer is “bad debt loss” (option 1).

Your answer is incorrect. The correct answer is “personal” (option 4).

Your answer is incorrect. The correct answer is “All of the above items may be shown by an account sales” (option 4).

Your answer is incorrect. The correct answer is “the consignor and is sent to the consignee” (option 1).

Your answer is incorrect. The correct answer is “Profit and loss on consignment Dr. & Consignment Cr.” (option 1).

Your answer is incorrect. The correct answer is “normal loss” (option 3).

Your answer is incorrect. The correct answer is “achieving a specific sales volume or promoting an item in a specific area” (option 1).

Your answer is incorrect. The correct answer is “$11,250” (option 1).

Computations:

= [$50,000 + $25,000) × 0.1] + [($50,000 + $25,000) × 0.05]
= $7,500 + $3,750
= $11,250

(Both ordinary and del credere commission are calculated on total sales)

Your answer is incorrect. The correct answer is “consignment account” (option 3).

Your answer is incorrect. The correct answer is “Goods sent on consignment Dr. and Trading account Cr.” (option 1).

Your answer is incorrect. The correct answer is “$60,000” (option 2).

Your answer is incorrect. The correct answer is “Consignee’s commission” (option 3).

Your answer is incorrect. The correct answer is “Godown rent paid by consignee” (option 1).

Your answer is incorrect. The correct answer is ” a del credere commission is given” (option 2).

Your answer is incorrect. The correct answer is “normal loss” (option 4).

Your answer is incorrect. The correct answer is “Selling and marketing expenses paid by consignee” (option 4).

Your answer is incorrect. The correct answer is “rests with the consignor” (option 1).

Your answer is incorrect. The correct answer is “Rs 10,200” (option 4).

Computations:

Cost of 100 units in stock + Proportionate non-recurring expenses
= [(100 units × Rs 100) + (Rs 4,000/2,000 units) × 100 units]
= Rs 10,000 + Rs 200
= Rs 10,200

Your answer is incorrect. The correct answer is “abnormal loss” (option 4).

Your answer is incorrect. The correct answer is “commission received account” (option 2).

Your answer is incorrect. The correct answer is “Consignor account” (option 2).

Your answer is incorrect. The correct answer is “Consignor account Dr. & Cash account Cr.” (option 1).

Your answer is incorrect. The correct answer is “All of the above statements are correct” (option 4).

Your answer is incorrect. The correct answer is “nominal” (option 2).

Your answer is incorrect. The correct answer is “All of the above statements are correct” (option 4).