Explain The Three Accounts Maintained By Consignor?

1.	Explain The Three Accounts Maintained By Consignor?
Answer» Consignment Account: It is a nominal account. It is in fact a Special TRADING and Profit and Loss Account. The balance, in this account, represents either profit or loss on consignment which is finally transferred to General Profit and Loss Account. CONSIGNEE's Personal Account: It is a personal account. It is MAINLY prepared to ascertain the amount due from the consignee. Goods SENT On Consignment Account: it is a REAL account.

Answer»

Consignment Account: It is a nominal account. It is in fact a Special TRADING and Profit and Loss Account. The balance, in this account, represents either profit or loss on consignment which is finally transferred to General Profit and Loss Account.
CONSIGNEE's Personal Account: It is a personal account. It is MAINLY prepared to ascertain the amount due from the consignee.
Goods SENT On Consignment Account: it is a REAL account.

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