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Question
If Consignee sent advance to Consignor, then which of the following entry will be passed in the books of Consignee?
A. Consignor A/c
To Cash & Bank A/c
Dr. B. Cash & Bank A/c
To Consignee A/c
Dr. C. Cash & Bank A/c
To Consignor A/c
Dr. D. Consignment A/c
To Cash & Bank A/c
Dr.
If Consignee sent advance to Consignor, then which of the following entry will be passed in the books of Consignee?
| A. Consignor A/c To Cash & Bank A/c | Dr. |
| B. Cash & Bank A/c To Consignee A/c | Dr. |
| C. Cash & Bank A/c To Consignor A/c | Dr. |
| D. Consignment A/c To Cash & Bank A/c | Dr. |
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Solution
The correct option is A A
The consignor is a creditor in the books of the consignee as the proceeds from the sale of goods entry on consignment is payable to him by the consignee. So the advance paid to him will be recorded in the books of the consignee in the following manner:Consignor's A/c................Dr. To Bank/cash A/c
The consignor is a creditor in the books of the consignee as the proceeds from the sale of goods entry on consignment is payable to him by the consignee. So the advance paid to him will be recorded in the books of the consignee in the following manner:
Consignor's A/c................Dr.
To Bank/cash A/c
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