Introduction to Consignment Accounting: Definition and Process

The video tutorial explains consignment accounting, focusing on the relationship between the consigner and consignee. It covers the process of appointing an agent to sell goods on behalf of the consigner, detailing the remittance process, expense deductions, and the roles of each party. The tutorial also discusses the ownership of goods, profit and loss distribution, and concludes with key points to remember about consignment transactions.

What is the basic concept of consignment?

Explain the principal-agent relationship in consignment.

Who are the consigner and consignee in a consignment transaction?

Describe the process of remittance from the consignee to the consigner.

How are expenses deducted from the sale proceeds in a consignment?

What does the consigner receive from the consignment transaction?

What happens to the goods that are unsold at the end of a period?