Consignment

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  • Topic: Accounts receivable, Balance sheet, Income statement
  • Pages : 11 (1865 words )
  • Download(s) : 94
  • Published : March 15, 2013
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MCQS| EACH QUESTIONS HAS FOUR POSSIBLE ANSWERS CHOOSE THE CORRECT ANSWER:| (1)| In accounting consignment means.|
| (a)          Goods forwarded from one place to another.(b)          Goods forwarded by a person to another. (c)          Goods sent by its owner to his agent.
(d)          Goods sent by its owner to his agent for the purpose by sale. (T)| (2)| Goods sent on consignment should be debited by consignor to:| | (a)          Consignment A/c (T)(b)          Goods sent on consignment A/c (c)          Consignees A/c

(d)          Consignors A/c|
(3)| In the books of consignor the balance of the consignment stock account would be shown:| | (a)          As an asset in the balance sheet.  (T)(b)          As liability in the balance sheet. (c)          On the credit side of trading account. (d)          On the debit side of consignment account.| (4)| On the dispatch of goods, the entry in the books of consignee would be:| | (a)          Consignment A/c will be debited and goods sent on consignment A/c will be credited.(b)          Consignment A/c debit and consignee A/c credit (c)          No entry (T)

(d)          None of above|
(5)| The consignor is:|
| (a)       Principal (T) (b)       Agent(c)       Debtor                                    (d)       None of them| (6)| The consignee is:|
| (a)       Principal                                 (b)       Agent  (T)(c)       Buyer                                      (d)       Seller| (7)| Account sales is submitted by:|
| (a)       Consignor                                 (b)       Consignee  (T)(c)       Principal to his agent            (d)       Debtor to creditor| (8)| In the books of consignor, the expenses incurred by consignor should be debited to:| | (a)       Consignees A/c (T) (b)       Consignment A/c(c)       Expenses A/c                         (d)       Consignor’s A/c| (9)| In the books of consignor, the expenses incurred by consignee should be debited to:| | (a)       Consignee A/c                       (b)       Consignment A/c (T)(c)       Expenses A/c                         (d)       Consignor’s A/c| (10)| In the books of consignor the acceptance of bills of exchange by the consignee will be credited to:| | (a)       Consignment A/c                   (b)       Consignment A/c  (T)(c)       Income A/c                            (d)       Consignor’s A/c| (11)| In the books of consignor the acceptance of bills of exchange by the consignee will be credited to:| | (a)       Consignment A/c                   (b)       Consignee’s A/c  (T)(c)       Bill receivable A/c                (d)       Bills payable A/c| (12)| In the books of consignor the abnormal loss should be credited to:| | (a)       Profit & loss A/c                   (b)       Consignment A/c (T)(c)       Trading A/c                            (d)       Consignees A/c| (13)| In case of delcreder commission, the liability for bad debits is on:| | (a)       Consignor                              (b)       Consignee   (T)(c)       Customer                               (d)       None of the above| (14)| In the books of consignor, the balance in the goods sent on consignment account is shown:| | (a)          On the asset side to balance sheet.(b)          On the liability side of balance sheet. (c)          On the credit side of trading A/c  (T) (d)          On the credit side of consignment A/c| (15)| In the books of consignee the expenses incurred by him on consignment are debited to:| | (a)       Consignment A/c                   (b)       Cash A/c(c)       Consignor’s A/c (T) (d)       Expense A/c| (16)| In the books of consignee, the sale of goods is credited to:| | (a)       Consignor’s A/c (T) (b)       Sales A/c(c)       Consignee’s A/c                    (d)       Cash A/c| (17)| The term A/c and sale A/c are ________________ in nature.| | (a)       Parallel...
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