Basic Accounting Transactions of Consignment

The video tutorial covers the basics of consignment accounting, detailing the common steps involved in consignment transactions. It explains the roles and responsibilities of the consigner and consignee, including expenses, sales, and commission. The tutorial also discusses the valuation of closing stock, profit or loss calculation, and the settlement process. Finally, it provides a brief overview of the next session's focus on journal entries.

What is the first step in the consignment process?

What expenses does the consigner incur when sending goods on consignment?

Explain the role of the consignee upon receiving the goods.

What happens if the consignee has not yet paid for the goods?

Describe the process of valuing the closing stock in consignment accounting.

What are the two possibilities for settling the balance with the consignee?

Summarize the basic accounting cycle or transaction sequence in consignment.