Cambridge International Advanced Level Accounting (9706) A Level - Paper 3 Financial Accounting Consignment Accounts Consignor , Consignee/Agent, Commission Del Credere Commission All the theories with steps if you want a support to complete this tute, text me on Wtsapp : +94779035940 All the past papers and model papers All the best children..!

1. 1Accounting – Year 12
Consignment Accounts
Consignment Accounts
Sanjaya Jayasundara
B.Sc.(Finance) Sp.
University of Sri Jayewardenepura,
Chartered Finalist,
Investment Advisor,
International School Teacher

2. 2Accounting – Year 12
Consignment Accounts
Content
Introduction
Preparing accounts in consignor’s books
Commission
Closing inventory
Del Credere Agent
Past Paper questions
Model questions
Syllabus according to Cambridge
1 Financial Accounting (A level) – Paper 03
Candidates should be able to distinguish between consignments and joint ventures and the
environment in which they operate.
Candidates should be able to:
• prepare ledger accounts for consignment transactions, including the calculation of closing inventory
valuation
• prepare ledger accounts for joint ventures
• calculate the profit for joint ventures

3. 3Accounting – Year 12
Consignment Accounts
Introduction
A consignment entails the sending of goods by the owner, the consignor, to an agent, the
consignee, who will collect the goods, warehouse them and then sell them for the owner.
The title to the goods remains with the consignor until the goods are sold.
The agent collects the money generated from the sale of the goods, deducting any expenses
incurred and the commission payable. The balance of cash is then paid to the consignor.
Consignment
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
Consignor
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
Consignee
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
Commission
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………

4. 4Accounting – Year 12
Consignment Accounts
Preparing accounts in Consignors books
Consignment Account - ……………. (Name of the agent)
Narration $ Narration $
Agent / Consignee Account
Narration $ Narration $
Bank Account
Narration $ Narration $
Goods on Consignment Account
Narration $ Narration $

5. 5Accounting – Year 12
Consignment Accounts
Profit on Consignment Account
Narration $ Narration $
Steps
1) Transferring goods by the consignor to consignee.
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
2) Extra payments paid by the consignor.
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
3) Expenses paid by the consignee/agent.
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
4) The commission charged by the consignee.
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
5) Recording the sales amount
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
6) Calculating the results on consignment.
………………………………………………………………………………………………………………………………………………………
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7) Recording the closing inventory.
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………………………………………………………………………………………………………………………………………………………
8) Recording the amount paid by the consignee.
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………

6. 6Accounting – Year 12
Consignment Accounts
Example : -
Dev , an exporter based in India, sends goods to Azad, his agent, in Maldives.
Dev purchased the goods for $ 2000 on 1 June. He paid freight charges of $200. Azad incurred Maldives
import duties amounting to $ 300 and further expenses of $ 80. Azad sold the goods for $ 4 200. He
deducted his expenses and his commission of 10 per cent of sales. Azad remitted the amount due to
Dev at the end of July.
Required:
Prepare appropriate accounts in Dev’s books of account.
Consignment Account –Azad
Narration $ Narration $
Azad
Narration $ Narration $

7. 7Accounting – Year 12
Consignment Accounts
Commission
If a question gives the sales on the consignment after the deduction of the commission earned by
the agent, the amount of sales before deduction of commission should be calculated to
include in consignment account.
Example
Silva makes sales of $ 9000 net of 7.5% commission.
Required:
Calculate the amount of sales before commission was deducted.
Answer:
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
Now try:
Sales after deduction of
commission
Commission earned Original Sales
$1890 10%
…………………………………
$ 16 840 3%
…………………………………
$ 14 260 31%
…………………………………

8. 8Accounting – Year 12
Consignment Accounts
Closing inventory
(Valuation of inventories remaining with an agent)
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
Example:-
$ 1 600 units of a product costing $ 5 each have been dispatched to an agent. Duties and landing
charges amounting to $ 1 200 have been paid. At the financial year end 200 units remain unsold with
the agent.
Required:
Value of the closing inventory
Closing Inventory = No of units × (unit price + total expenses/total units)
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
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……………………………………………………………………………………………………………………………………………………………
Consignment Account
Narration $ Narration $
Balance c/d ××××
×××× ××××
Balance b/d ××××
Opening inventory for the next period

9. 9Accounting – Year 12
Consignment Accounts
Del Credere Agent
……………………………………………………………………………………………………………………………………………………………
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Double Entry
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……………………………………………………………………………………………………………………………………………………………
In business law, a del credere agency is a type of principal-agent relationship
wherein the agent acts not only as a salesperson or broker for the principal, but
also as a guarantor of credit extended to the buyer.
Del Credere Agency - Investopedia
https://www.investopedia.com/terms/d/del-credere-agency.asp
A del credere (pronounced [del ˈkreːdere]; Italian for "belief" or "trust") agent, in
English law, is one who, selling goods for their principal on credit, undertakes for
an additional commission to sell only to persons who are absolutely solvent.
Del credere - Wikipedia
https://en.wikipedia.org/wiki/Del_credere
Question :
Ming, a trader in China, sent a consignment of 900 units of his product to Sachin, an agent in India.
The goods had cost Lee $ 70 each; he also paid freight and insurance costs amounting to $ 720.
At Ming’s financial year end Sachin had sold 760 units for $ 100 each. Sachin had paid landing charges
$ 2000; import duties of $ 750 and other direct expenses of $ 50. Sachin is paid 5 per cent commission
on sales plus 2.5 per cent delcredere commission. At the financial year end Sachin sent Lee $ 50 000.
Required:
a) The consignment account in Ming’s books of account.
b) Sachin’s account

10. 10Accounting – Year 12
Consignment Accounts
Consignment Account – Sachin
Narration $ Narration $
Sachin
Narration $ Narration $

11. 11Accounting – Year 12
Consignment Accounts
Past paper questions
2016/18 Specimen Paper 3 - Question 2
Lee started a business in Indonesia on 1 January 2013 selling lawn mowers.
During the first year of trading Lee bought 1000 lawn mowers at $50 each. He shipped 400
of these to Albert, his agent in Jamaica. Lee also sold 550 lawn mowers in Indonesia.
The following additional information is available.
Freight charges paid by Lee $3 600
Landing duties paid by Albert $400
Rate of commission paid to Albert 10%
Cash remitted by Albert to Lee $19 000
Lee’s income statement for the year ended 31 December 2013 included the following.
$
Gross profit 22 000
Consignment profit 6 720
Selling, distribution and administration costs (arising in Indonesia) 17 600
Lee’s statement of financial position at 31 December 2013 included the following inventory.
$
Jamaica 4 800
Indonesia 2 500
Total inventory 7 300
REQUIRED
(a) Prepare the consignment account in the books of Lee for the year ended 31 December
2013. [8]
(b) Prepare Albert’s account in the books of Lee for the year ended 31 December 2013. [6]
(c) Calculate the number of unsold lawn mowers Albert was holding on 31 December 2013
[5]
Additional information Lee is considering whether to concentrate his efforts on sales in
Indonesia or in Jamaica.
REQUIRED
(d) Advise Lee where to concentrate his sales effort. Support your answer with calculations.
[6]
[Total: 25]

12. 12Accounting – Year 12
Consignment Accounts
(a) In the books of Lee
Consignment Account
Narration $ Narration $
(b) In the books of Lee
Albert Account
Narration $ Narration $
(c)………………………………………………………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
(d)………………………………………………………………………………………………………………………………………………………
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13. 13Accounting – Year 12
Consignment Accounts
May/June 2019 – Variant 31/33 – Question 3
Ahmed runs a manufacturing business in Singapore producing computer screens.
For the year ended 31 December 2017 his cost of production per screen was $80 and he
operates on
a margin of 20%.
For the year ended 31 December 2018 he sent 500 screens to his friend, Rohan, who is a
retailer in
India. The transfer value agreed between the friends was 10% less than the standard selling
price.
(a) Calculate the unit value at which the screens are transferred from Singapore to India. [2]
Additional information
The following relates to the year ended 31 December 2018.
1 Ahmed’s opening bank balance was $55 000 and the closing balance was $94 000. This
bank account was only used for the consignment.
2 Ahmed paid transportation costs of $1000.
3 Rohan sold all of the screens at a mark-up of 60%.
4 Customs duty of 5% was paid by Rohan.
5 Rohan earned a commission of 5% on all sales. Rohan made a remittance to Ahmed.
(b) Prepare in the books of Ahmed:
1 a summarized bank account showing the entries relating to the consignment. [3]
2 the consignment account [7]
3 the account of Rohan [5]
Additional information
Demand for Ahmed’s screens is increasing. However, he is unable to increase production.
Rohan
wishes to continue selling Ahmed’s computer screens in India for the year ending
31 December 2019.
(c) Advise Ahmed whether or not he should continue with the consignment arrangement with
Rohan. Justify your answer using relevant calculations and reference to non-financial
factors.
[8]
[Total: 25]
(a)………………………………………………………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………

14. 14Accounting – Year 12
Consignment Accounts
(b) 1. Bank Account
Narration $ Narration $
2. Consignment Account
Narration $ Narration $
3. Rohan Account
Narration $ Narration $
(a)………………………………………………………………………………………………………………………………………………………..
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15. 15Accounting – Year 12
Consignment Accounts
February/February 2019 – Variant 32 - Question 3
SH Limited sent goods on consignment to Maureen on 1 November 2018.
The consignment consisted of 30 containers, invoiced to Maureen at $7200 each.
On 5 November SH Limited paid shipping expenses on the containers of $11 600.
On 6 November Maureen paid customs charges of $7800 on the consignment.
By 31 December 2018 Maureen had sold 24 containers for a total of $244 800 and she had
remitted
90% of this to SH Limited.
Maureen is entitled to a 5% commission from SH Limited on all containers sold.
(a) Calculate the value of the closing inventory. [4]
(b) Prepare the following accounts in the books of account of SH Limited.
(i) Consignment account
[7]
(ii) Maureen account [5]
(c) Calculate the profit per container. [2]
(d) Explain what the closing balance on Maureen account represents. [3]
(e) Explain two differences between a consignment and a joint venture. [4]
[Total: 25]
(a)……………………………………………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
(b)
(i) Consignment Account
Narration $ Narration $

16. 16Accounting – Year 12
Consignment Accounts
(ii)
Maureen Account
Narration $ Narration $
(c)……………………………………………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………………………………………………
(d)……………………………………………………………………………………………………………………………………………………….
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……………………………………………………………………………………………………………………………………………………………
(e)
Consignment Joint Venture

17. 17Accounting – Year 12
Consignment Accounts
May/June 2018 – Variant 32 – Question 3
Y Limited is based in Mauritius and has recently sent a consignment of goods to Mahood
who lives in Egypt. They agreed the following terms:
1 Mahood has to make an advance payment before the goods are delivered to him.
2 Mahood is entitled to a commission of 5% on all sales made by him. The commission is
calculated on the sales value after the deductions of the commission.
The following transactions took place during the year ended 31 December 2017.
Y Limited:
sent 1000 units to Mahood and invoiced him at $175 each
paid freight of $15 400 and insurance of $3200.
Mahood:
made an advance payment of $55 000 to Y Limited
made cash sales of 480 units at $257.50 each
made credit sales of 320 units at $270 each
paid the following:
import duty
advertising
carriage inwards
carriage outwards
$
1600
9700
2800
3300
All customers who bought on credit from Mahood settled their accounts in full at 31
December 2017 except a customer who bought 16 units. It was confirmed that nothing will
be recovered from this customer.
At the year-end 60 units with minor faults were discovered by Mahood. Their net realisable
value was $150 each.
Mahood paid the balance owing to Y Limited by cheque.
(a) Calculate the cost per unit to be used when valuing inventory. [2]
(b) Prepare the consignment account in the books of Y Limited for the year ended
31 December 2017.
[13]
(c) Prepare Mahood’s account in the books of Y Limited for the year ended 31 December
2017. [5]
Additional information
The directors of Y Limited are thinking of opening a branch overseas to sell its goods rather
than having a consignment agreement with Mahood.
(d) Suggest whether Y Limited should continue consigning goods to Mahood or open a
branch overseas. Justify your answer.
[5]
[Total: 25]

18. 18Accounting – Year 12
Consignment Accounts
(a)……………………………………………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
(b)
Consignment Account
Narration $ Narration $
(c) The Consignee – Mahood Account
Narration $ Narration $
(d)……………………………………………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………

19. 19Accounting – Year 12
Consignment Accounts
October/November 2017 – Variant 33 - Question 3
Aleksander is a trader with a financial year end of 30 June. He buys containers of sunflower
seeds for $100 each. Some of these he ships to his agent Benji in northern Europe. He pays
Benji a commission of 10% of sales value.
The following information is available:
1 On 2 April 2017 Aleksander sent 200 containers to Benji. Aleksander paid packing costs of
$120 and freight costs of $6080.
2 Benji paid additional freight costs of $1600 for transport from the port to his warehouse.
3 In the period to 30 June 2017 Benji sold 160 containers for $170 each.
He remitted $21 000 to Aleksander on 14 June.
REQUIRED
(a) Prepare the following ledger accounts in the books of Aleksander for the 3 months ended
30 June 2017.
(i) goods on consignment account [2]
(ii) consignment account [12]
(iii) Benji account [5]
Additional information
The government in Benji’s country decided to introduce import duties from 1 July 2017 which
amount to $20 per container.
REQUIRED
(b) Explain how Aleksander might have dealt with this increase in cost. Support your answer
by considering the effect on the profit per container. [4]
(c) State why an advertising campaign paid for by an agent would not be included in the
valuation of inventory. [2]
[Total: 25]
(a) (i)
Goods on Consignment Account
Narration $ Narration $
(ii)
Consignment Account
Narration $ Narration $

20. 20Accounting – Year 12
Consignment Accounts
(c)(iii)
Benji Account
Narration $ Narration $
(d)……………………………………………………………………………………………………………………………………………………….
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*…………………………………………………………………………………………………………………………………………………………
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*…………………………………………………………………………………………………………………………………………………………
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21. 21Accounting – Year 12
Consignment Accounts
February/March 2017 - Question 4
Sachin is a trader buying and selling electrical appliances which cost $150 per unit. His
brother,
Tajid, is located overseas and it was planned that he would sell some of the appliances. During
the year ended 31 December 2016 Sachin sent 1000 appliances to Tajid.
The following information is also available.
1 The rate of commission charged by Tajid is 10% on sales.
2 Tajid planned to sell the appliances at a mark-up of 40%.
3 All appliances were sold. However, the final 250 units of the consignment could only be
sold
for $180 per unit.
4 Sachin paid transportation costs of $3000.
5 Tajid paid selling expenses of $4000 and $1500 import duty.
6 On 31 December 2016 Tajid made a full remittance to Sachin to settle the account.
REQUIRED
(a) Prepare the consignment account in Sachin’s books for the year ended 31 December
2016. [9]
(b) Prepare Tajid’s account in the books of Sachin for the year ended 31 December 2016. [3]
(c) Prepare the goods sent on consignment account in the books of Sachin for the year
ended
31 December 2016. [2]
(d) Prepare Sachin’s account in the books of Tajid for the year ended 31 December 2016. [5]
(e) Identify two possible reasons for the fall in the selling price of the appliances. [2]
Additional information
Sachin has an additional $150000 to invest. He is considering whether to send an identical
consignment to Tajid or to invest in a new project in his home country which would
guarantee a return of 12% on the investment.
REQUIRED
(f) Discuss whether Sachin should send a further consignment to Tajid or invest in the new
project. Justify your answer by giving three reasons for your decision.
[4]
[Total: 25]

22. 22Accounting – Year 12
Consignment Accounts
(a) Consignment account
Narration $ Narration $
(b) Tajid’s account
Narration $ Narration $
(c) Goods sent on consignment account
Narration $ Narration $
(d) Sachin’s Account in the books of Tajid
Narration $ Narration $

23. 23Accounting – Year 12
Consignment Accounts
(e)………………………………………………………………………………………………………………………………………………………
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(f)………………………………………………………………………………………………………………………………………………………
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24. 24Accounting – Year 12
Consignment Accounts
October/November 2016 – Variant 33 - Question 4
Hamid and Patel trade regularly with each other. Patel is based in India and Hamid is based
in Scotland.
On 15 November 2014 Hamid sent 100 cases of goods to Patel costing $12 000. The
commission
on sales was agreed at 5% of the gross sales.
On the same day Hamid paid delivery charges of $610 and insurance of $110.
Hamid’s financial year ended on 31 March 2015.
At that date Patel provided the following information:
1 70% of the goods had been sold for $10 600.
2 $7475 had been sent to Hamid.
3 There was an irrecoverable debt of $120.
4 Storage charges of $350 and selling expenses of $245 had been paid by Patel.
Patel paid the balance due on 31 March 2015.
Hamid incurred bank charges of $12 for processing this payment.
REQUIRED
(a) Prepare in the books of Hamid the following accounts at 31 March 2015:
(i) the goods sent on consignment account [1]
(ii) the consignment to Patel account [11]
(iii) Patel account [7]
(b) Analyse the effect on profit of the irrecoverable debt incurred during the year. [2]
Additional information
Hamid and Patel are now considering forming a partnership rather than continuing to trade
on a
consignment basis.
REQUIRED
(c) Advise whether or not Hamid and Patel should enter into a partnership with each other.
Justify your answer. [4]
[Total: 25]

25. 25Accounting – Year 12
Consignment Accounts
(a)(i)
Goods sent on Consignment Account
Narration $ Narration $
(ii) Consignment to Patel account
Narration $ Narration $
(iii) Patel account
Narration $ Narration $

26. 26Accounting – Year 12
Consignment Accounts
(b)………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
(c)
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Did you know?
Consignment origin
The word consignment comes from the French consigner, meaning "to hand over or
transmit", originally from the Latin consignor "to affix a seal", as it was done with official
documents just before being sent.
Consignment - Wikipedia
https://en.wikipedia.org › wiki › Consignment
You can read further
Consignment is the act of consigning, the act of giving over to another person or agent's charge,
custody or care any material or goods but retaining legal ownership until the material or goods are
sold. That may be done for the purpose of shipping the goods, transferring the goods to auction or
intending the goods to be placed on sale in a store (a consignment store).
The verb "consign" means "to send" and therefore the noun "consignment" means "sending goods
to another person". In the case of "retail consignment" or "sales consignment" (often just referred
to as a "consignment"), goods are sent to the agent for the purpose of sale. The ownership of these
goods remains with the sender. The agent sells the goods on behalf of the sender according to
instructions. The sender of goods is known as the "consignor" and the agent entrusted with the
custody and care of the goods is known as the "consignee"

27. 27Accounting – Year 12
Consignment Accounts
February/March 2016 - Question 2
Chin started business in Hong Kong on 1 January 2015 selling specialist radios.
In his first year of trading he bought 2000 radios, of which 1000 were shipped to his agent
Sumit in India.
The following information is available for the year ended 31 December 2015.
Freight charges paid by Chin $4000
Import duties paid by Sumit ?
Selling price per radio $60
Commission paid to Sumit 20% of sales
Cash remitted by Sumit $26 800
At 31 December 2015 Chin had the following inventory.
$
In Hong Kong (50 radios) 1250
In India (100 radios) 3050
Total 4300
REQUIRED
(a) Calculate:
(i) the original price per radio paid by Chin [1]
(ii) the import duties paid by Sumit. [4]
(b) Prepare the following in the books of Chin:
(i) the consignment account [8]
(ii) Sumit’s account. [6]
Additional information
In 2015 the 1000 radios shipped to Sumit were in monthly batches of varying quantities.
Eachbatch had incurred an administration charge of $160 which was included in the freight
chargespaid by Chin.
Chin is now considering sending future annual supplies of radios in one batch each January.
REQUIRED
(c) Advise Chin, with reasons, whether or not he should make this change. [6]
[Total: 25]

28. 28Accounting – Year 12
Consignment Accounts
(a)(i) …………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
(ii) ……………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
(b) (i) Consignment account
Narration $ Narration $
(ii) Sumit’s account
Narration $ Narration $
(c)………………………………………………………………………………………………………………………………………………………
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29. 29Accounting – Year 12
Consignment Accounts
Model Questions
1) Import duties are always paid by the consignor. True/False ?
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2) A business can only make one consignment in any one financial year. True/False ?
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3) Explain the difference between a consignor and a consignee.
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4) Explain the difference between an agent and a consignee.
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5) Explain how the value of inventory at the end of an accounting period is calculated.
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6) A quantity of 500 electrical generators are shipped to an overseas agent. The agent sells 400.
Import duties amount to $ 1 500. Calculate the Import duty that relates to the remaining inventory.
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30. 30Accounting – Year 12
Consignment Accounts
7) Explain the term ‘ delcredere commission’.
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Get Ready for the exam like this ………………
1) Knowing the Material
Keep up with the lessons.
Understand why
Work practice problems to understand how
Organize your thoughts
2) Preparing for the Exam
Understand your own strengths and weaknesses
Have an understanding of key concepts
Review each lesson before and after class
Take a practice test
3) Establishing a Productive Study Space
Find a quiet place to work
Gather the appropriate materials
Familiarize yourself with the test format
Fuel your mind and body
Find a study partner or study group

31. 31Accounting – Year 12
Consignment Accounts
25 Best Consignment Shop Related Business ideas for 2019
A consignment shop is one where the owner of an item called the consignor, gives the item to a shop
owner or seller called the consignee, with an agreement for commission after the item is sold. While the
item is with the seller, the consignor still retains full ownership of the item, so if at any point the consignor
feels the need to take back the item, they are free to.
This is different from a pawn shop were the owner uses the item to borrow money, he can only collect
the item back upon the payment of the money borrowed with interest. These shops are also called
second-hand shops, the terms are used interchangeably in different occasions. There are quite a
number of business ideas within this industry and a few are listed below.
1. ANTIQUES CONSIGNMENT SHOPS
Antiques are by far the most popular kind of consignment shops you can find in the US. Antiques are
items that have great value either because of their artistic designs, sentimental story lines, or how they
came to be. More importantly, an item is not called an antique until it is at least one hundred years old.
I guess one of the reasons why such items may be so valuable is because of its longevity. Usually items
would get missing or destroyed as the years go by, but for something to remain intact for more than a
hundred years, that in itself is outstanding.
People who have these types of items in the present day may not have much use for them anymore. If
they want a quick way to make cash, they can look for an antiques consignment shop to sell them.
Some antiques are worth millions, but the total amount of worth will depend on those who analyze them.
Read further: https://www.profitableventure.com/consignment-shop-business-ideas/
This beautiful painting is the work of 16-year-old Dimitra Milan, who started painting just four
years ago.

32. 32Accounting – Year 12
Consignment Accounts
Chapter Summary
* A consignment is goods sent by the owner (the consignor)to an agent who then sells them
on behalf of the consignor.
*The debit side of the consignment account records all expenditures incurred by both the
consignor and his agent relating to the consignment.
*If the debits are greater than the credit entries then a loss has been incurred; if the credit
side is the larger then the consignment has been profitable.
*Inventories held by an agent at a year end are valued; care must be taken in the
determination of the cost of these goods. Only costs relating to the unsold goods are
included in this valuation.
All the best children…!
I wish you an enjoyable learning session...!
Sanjaya Jayasundara
Like me on FB: “Accounting with Sanjaya Sir”