Principals of Accounting ICOM Part 02 Top 500 + MCQS Download Pdf Chapter 03

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Chapter – 3

Consignment Account

Encircle the most appropriate answer among the following options

1.The act of sending goods by its owner to his agent is called as:

  1. Consignment
  2. Whole selling
  3. Retail selling   
  4. Proprietorship

2.In the case of consignment, the person who send his goods for sale is known as, the

  1. Consignee
  2. Consignor
  3. Agent
  4. patner

3.In the case of consignment, the person to whom the goods are sent is known as

  1. Principal         
  2. Partner
  3. Consignee    
  4. Consignor

4.The relationship between consignor and consignee is that of:

  1. Buyer & seller
  2. Debtor & creditor
  3. Wholesaler & retailer
  4. Principal & agent
  5. ‘

5.The relationship between the consignor and consignee is not that of:

  1. Principal & agent
  2. Manufacturer & agent
  3. wholesaler & agent
  4. Buyer and seller

6. The consignor is:

  1. principal        
  2. An agent
  3. A debtor of consignee
  4. A creditor of consignee

7. Consignee is

  1. A principal
  2. An agent
  3. A debtor
  4. A creditor

8. The consignee acts entirely on behalf of the:

  1. Debtors
  2. Creditörs
  3. Customers     
  4. Principal or consignor

9. The consignment account is the nature of a:

  1. Personal account       
  2. Real account
  3. Nominal account
  4. Artificial personal account

10.In accountancy, ‘consignment’ signifies:  

  1. Goods forwarded from one place to another
  2. Goods forwarded by a person to another
  3. Goods dispatched by its owner to his agent  
  4. Goods dispatched by its owner to his agent for the purpose of sale

11.Goods dispatched by its owner to his agent for the purpose of sale The consignor sends goods to the consignee along with:

  1. Manufacturing order  
  2. Purchase order
  3. Performa invoice     
  4. None of these

12.From the consignor’s point of view, when goods are dispatched by the consig„ to the consignee, it will be a:

  1. Consignment outward.       
  2. Consignment inward
  3. Consignment in transit           
  4. Consignment in process

13.From the consignee’s point of view, when goods are dispatched by the consignor, to the consignee, it will be a:

  1. Consignment outward
  2. Consignment inward
  3. Consignment in transit           
  4. Consignment in process

14. The consignment outward book or Journal is maintained by:

  1. Customers     
  2. Consignor
  3. Consignee      
  4. Debtors

15.The consignment inward book or Journal is maintained by:

  1. Consignee
  2. Consignor
  3. Customer       
  4. Debtors

16.In consignment, expenses incurred by the consignee in connection with the goods consigned to him are usually borne by:

  1. Consignor
  2. Consignee
  3. Customer
  4. Debtor

The periodical report prepared by consignee and send to consignor about sale of goods is called:

  1. Sales account
  2. Account sales
  3. Performa invoice
  4. None of these

18. The statement showing the therein sale proceeds less expenses; commission; remittances and the resultant balance due by consignee to consignor is known as:

  1. Account sales          
  2. Sales account
  3. Performa Invoice       
  4. Clearance report

19 In Consignment, the “Proforma Invoice” is a substitute of:

  1. Account sale  
  2. Letter of order
  3. Forwarding letter     
  4. None of these

20. .In consignment, the remuneration denoted to consignee for selling the goods of the consignor, is termed as:

  1. Salary 
  2. Wages
  3. Profit  
  4. Commission

21. An additional commission paid to a consignee who guarantees the payment in case of credit sale, is called.:

  1. Bonus 
  2. Commission gnor       
  3. Del-creder commission       
  4. Credit commission

22. Account sales is prepared and rendered by:

  1. Consignee to consignor     
  2. Debtor to creditor       
  3. Buyer to seller
  4. Owner to servant

23.Del-credere commission is calculated on;

  1. Cash sales
  2. Credit sales
  3. Total sales      
  4. Both cash and credit sales

24.A Commission paid to the consignee by consignor for pushing a new product in the market is called.

  1. Double Commission  
  2. Del-credere commission
  3. Bonus
  4. Overriding commission

25.Del credere commission is paid to the consignee in order to avoid.

  1. Sales
  2. Commission
  3. Credit sales    
  4. Bad debts

26.In case of del creder commission, the liability for bad debts is on:

  1. Consignee    
  2. Consignor
  3. Both on consignor & consignee
  4. None of these

27.The loss arises due to natural causes such as evaporation, drying, breaking in bulk, etc, is called:

  1. Abnormal loss
  2. Normal loss
  3. Additional loss
  4. None of these

28.The losses arise in consignment transactions, such as loss of goods in transit, thefts, goods damaged or destroyed by fire etc, are said to be:

  1. Normal losses
  2. Additional losses
  3. Abnormal losses
  4. Both normal & abnormal losses

29) Consignee account is of the nature of:

  1. Personal account
  2. Nominal account
  3. Real account
  4. None of these

(30) Overriding commission is calculated on:

  1. Credit sales only
  2. Cash sales only
  3. Total sales
  4. Neither cash nor credit sales

(31) Normal losses are due to:

  1. Avoidable factors
  2. Unavoidable factors
  3. None of these
  4. Contingent

(32) Abnormal loss arises due to:

  1. Natural causes
  2. Evaporation, drying, breaking in
  3. Pilferage, theft, fire etc.
  4. Some unavoidable causes

(33) Goods sent on consignment account is of the nature of:

  1. Personal account
  2. Nominal account
  3. Real account
  4. Both personal & real account

(34) In consignment, the “Consignment account” is the substitute of the:

  1. Trading & profit & loss account
  2. Balance sheet
  3. Trial balance
  4. Real account

35. The goods are sent on consignment debit is given to:

  1. Consignees account
  2. Consignment account
  3. Sales account
  4. Consignor account

(36) In the books of consignor, the loss on the consignment should be credited to

  1. Consignment account
  2. Consignee’s account
  3. Profit & loss account
  4. Goods sent on Consignment account

37. In consignee books, the expenses incurred by him on consignment are debited

  1. Consignment account
  2. Cash account
  3. Consignor’s account
  4. Goods sent on consignment account

38. In consignor books, the profit on consignment should be debited to:

  1. Commission a/c
  2. Consignee’s alc
  3. Goods sent on consignment a/c
  4. Consignment account

39. In the books of consignee, the sale of goods is credited to:

  1. Consignee ale
  2. Consignor’s a/c
  3. Sales ale
  4. Profit & loss alc

40. Abnormal loss of stock after adjusting for recovery, and insurance claim is,

transferred to:

  1. Profit & loss a/c
  2. Trading a/c
  3. Capital a/c
  4. Commission a/c

41. In the books of consignor, reporting of sale by consignee should be debited to:

  1. Consignee’s personal account
  2. Consignor’s account
  3. Consignment account
  4. Goods sent on consignment a/c

42. In the consignor’s book, the expenses incurred and paid by the consignor, are

debited to:

  1. Trade expenses a/c
  2. Particular consignment a/c
  3. Freight and insurance a/c
  4. Consignee’s a/c

43. When the goods sent on consignment are sold by the consignee, the account to be

debited is:

  1. Cash a/c
  2. Consignee’s personal a/c
  3. Consignment a/c
  4. Good sends on consignment a/c

44.In the consignor’s books, the expenses incurred by the consignee should be

debited to:

  1. Expenses account
  2. Consignment account
  3. Consignee’s personal account
  4. Consignor’s account

45. The abnormal loss on consignment is credited to

  1. Consignment account
  2. Consignee’s personal account
  3. Profit & loss account
  4. Consignee account

46.In consignor’s books, the balance on of the consignment stock account would be

shown:

  1. On the credit side of the trading account
  2. As a liability in the balance sheet
  3. As an asset in the balance sheet
  4. On the debit side of the trading account

47.In the books of consignee, the sale of goods is credited to:

  1. Sales account
  2. Consignor’s account
  3. Consignee’s account
  4. None of these

48. When the consignee receives the goods from the consignor. In the books of

consignee:

  1. Goods are debited to goods received on consignment account
  2. No entry is to be passed
  3. Credits consignor’s personal account
  4. Debits consignor’s personal account

49.In the book of consignor, the balance in the goods sent on consignment is

  1. On the assets side of the balance sheet
  2. On the liabilities side of the balance sheet
  3. On the debit side of trading account
  4. On the credit side of trading account

50.In the consignor’s books, the acceptance of a bill of exchange by consignee credited to:

  1. Consignee’s account          
  2. Bill payable account
  3. Consignment account
  4. Bill Receivable account

51.In consignee’s books, the acceptance of a bill of exchange by consignee Will debited to:

  1. Trading account         
  2. Bill payable account
  3. Consignor’s account
  4. Consignment account

52.The unsold stock is valued at:

  1. Original cost of the goods
  2. Original cost plus non-recurring (direct) expenses incurred by both consignor and consignee
  3. Original cost plus direct expenses incurred only by the consignor
  4. Original cost plus indirect expenses incurred only by the consignor

53.Loss of stock is said to be normal when:

  1. It is because of leakage         
  2. It is unavoidable and natural
  3. The stock is destroyed in fire
  4. None of these

54.. When there are normal losses and abnormal losses at the same time, the abnormal loss is calculated on:

  1. The original cost
  2. The original cost plus non-recurring (direct expenses) duly reduced by the normal loss
  3. The original cost plus direct expenses
  4. The original cost plus indirect expenses

55. By nature, the term account sale and sales account are:

  1. Same 
  2. Different
  3. Equal  
  4. None of these

56. .Discount on bills discounted is treated as a financial expenses and is debited to:

  1. Consignment account
  2. General profit & loss account
  3. Consignee’s account 
  4. Commission account

57. .Commission account Consignor account is of the nature of:

  1. Real account  
  2. Nominal account        
  3. Personal account     
  4. None of these

58. In the books of consignee, on dispatch of goods by the consignor the entry would be:

  1. Consignment a/c to goods sent on consignment a/c
  2. Consignment a/c to consignor
  3. Trading a/c to consignor
  4. No entry

59.In the books of consignee, on the payment of advance to consignor, the entry would be passed:

  1.  Cash / bank a/c          xxx     

                         To consignor a/c.       xxx     

  1. Consignor a/c            xxx

                                    To cash / bank a/c     xxx

      3.   Consignor a/c  xxx

                                    To consignment a/c    xxx

      4.   Cash [bank a/c            xxx

                                    To consignment a/c    xxx

60.In the books of consignor, for expenses paid by consignor, the entry would be:

  1. Cash / bank a/c           xxx

            To consignment a/c    xxx

  1. Consignee a/c xxx

             To consignment a/c       xxx

  1. Consignment a/c       xxx

            To cash [bank a/c     xxx

  1. None of these

61. On acceptance of bill of exchange in favour of consignor, the entry would be passed by consignee;

  1. Bills payable a/c          xxx

            To consignor   xxx

  1. Consignment a/c         xxx

                        To consignor   xxx

  1. Bills receivable a/c      xxx

                        To consignor   xxx

  1. Consignor      xxx

            To bills payable a/c   xxx

62. In the books of consignee, on sale of goods for cash, entry

  1. Cash a/c          x.x

To consignment ac     xxx

  1. Cash acc        xxx

            To consigno  rxxx

  1. Consignor        xxx

            To sales a’c     xxx

  1. Consignment   xxx

            To sales a’c     xxx

63. On sale of goods on credit, ‘”what entry is to be passed by consignee:

  1. Sundry Debtors ak      .xxx

To consignment a e    xxx

  1. Sundry Debtors ajc     .xxx

To Profit & loss a’c      xxx

  1. Sundry debtors a/c   xxx

To consignor xxx

  1. None of these

64.In the books of consignor, for the commission payable to the consignee the would be:

  1. Consignment a/c

To commission a/c     xxx

  1. Commission a/c          xxx

To cash Wc

  1. Commission a/c          xxx

To consignment a/c    xxx

  1. Consignment a/c

To consignee’s personal a/c           xxx

65.For Commission due, which of the following entry is to be passed by consignee:

  1. Cash a/c          xxx

To commission a/c     xxx

  1. Consignor      xxx

To Commission a/c xxx

  1. Cash a/c          xxx

To consignor   xxx

  1. None of these

66. For goods taken over by consignee, out Of consignment stock, what entry is to be passed by consignee:

  1. Consignment a/c         xxx     

 To consignor  xxx

  1. Purchases a/c xxx

To cash a/c     xxx

  1. Purchases a/c            xxx

To consignor xxx

  1. None of these

67.In the books of consignee, the final payment by accepting a bill to consignor, the entry would be:

  1. Cash a/c          xxx.

             To Bills payable a/c    xxx     

  1. Consignment a/c         xxx

To Bills payable a/c     xxx

  1. Bills payable a/c          xxx.

             To consignor  xxx

  1. Consignor a/c            xxx.

              To BillS payable a/c            xxx     

68.Stock on Consignment appears in the balance sheet of the:

  1. Consignor     
  2. Consignee
  3. Both consignor & consignee
  4. None of these

69.When the goods are sent on Consignment, the entry is normally done at:

  1. Sales price     
  2. Cost price
  3. Both sale and cost price        
  4. None of these

70.In the books of consignor, the stock at the end with consignee is credited to:

  1. Consignor’s account  
  2. Consignee’s account
  3. Consignment account
  4. Goods sent on consignment a/c

71.For unsold stock lying with the consignee, the consignee will pass:

  1. No entry
  2. Compound entry
  3. Single entry
  4. All of above

72.Packing expenses paid by consignor is debited to:

  1. Bills receivable account         
  2. Bank account
  3. Consignment account         
  4. General profit & loss account

73.The process of adjusting invoice price to the cost price is termed as:

  1. Loading          
  2. Unloading
  3. Invoicing         
  4. Costing

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