Introduction to Consignment Accounting: Basic Terms

The video tutorial explains the consignment process, focusing on key terms such as consigner, consignee, and consignment. It details the roles of consigner and consignee, the purpose of a proforma invoice, and the components of account sales. The tutorial also distinguishes between normal and abnormal losses, providing examples for each. The content is structured to help learners understand the consignment business and its associated documentation.

Who is responsible for sending goods to the agent in a consignment?

• Consigner

• Supplier

• Consignee

• Customer

What is the purpose of a proforma invoice in a consignment?

• To serve as a final sales invoice

• To provide details about the goods being sent

• To calculate taxes

• To confirm payment

Which document is prepared by the consignee to summarize transactions?

• Sales Receipt

• Account Sales

• Proforma Invoice

• Delivery Note

What is an example of a normal loss in consignment?

• Evaporation

• Accidental breakage

• Fire damage

• Theft

Which type of loss is considered unpredictable and often due to accidents?

• Normal Loss

• Expected Loss

• Abnormal Loss

• Operational Loss