2. Consignment Accounts: "Journal Entries & Ledger Accounts in the Books of Consignor"

Hello, dear students, welcome to the Dvika Academy of Commerce and Management. Today we will look at financial accounting, specifically consignment accounts, which I have already introduced. So, after the introduction, we will look at how to prepare accounting entries and maintain the sender's accounting books. You know that there are two parties involved in a consignment.

Consignor, that is, the person who sends the goods to the agent. The consignor means that here he is the owner and the consignor is the person who receives the goods from the owner. Consignor. So, he is a consignor. The relationship between the consignor and the consignor is built exclusively as an owner-agent relationship.

So what books does a consignor keep? What bills does he prepare? The consignor is the principal or owner. OK. Business owner. What books is he preparing? What accounting entries are required in the consignor's books? We'll see now. Please focus on this lesson. From this lesson you will understand at least 50% of the topic of consignment.

OK. Let's move on to the topic of accounting entries and accounts in the consignor's books. First, I will explain the accounts to you. It is easy to identify accounting transactions through accounts. That's my strategy. My teaching style. So, what kind of invoices will the consignor prepare? Consignee in the books of the consignee. OK.

The consignor maintains three accounts. One is a consignment account and the other is a consignor account . Consignment account, consignor account, and goods sent on consignment account. He prepares three bills. First, let's look at what a consignment account is. What does he record in the consignment account? It is almost like a trading