Conceptual Framework Of Specialised Accounting

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Consignment is a business arrangement where goods are sent by the owner (consignor) to an agent (consignee) for sale on a commission basis. The consignor retains ownership of the goods until they are …

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The **consignor** is the person who sends the goods for sale (e.g., manufacturer or wholesaler). The **consignee** is the agent who receives the goods and sells them on behalf of the consignor. The co…

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In **consignment**, ownership remains with the consignor; the consignee acts as an agent. In a **sale**, ownership transfers to the buyer. Unsold goods can be returned in consignment but not in sale.

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Consignment is preferred because it reduces the cost and effort of direct selling, especially in distant or foreign markets. Agents have local market knowledge, which helps increase sales. It also avo…

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A proforma invoice is a document prepared by the consignor that shows the value of goods sent on consignment. It looks like a regular invoice but does not require immediate payment. It helps the consi…

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An account sale is a statement sent by the consignee to the consignor. It includes details like quantity sold, selling price, total sales, expenses incurred, commission due, and the balance payable. I…

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An **invoice** is prepared by the seller and sent with goods; it records the value of goods dispatched. An **account sale** is prepared by the agent after selling goods and includes sales details, exp…

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There are three types: 1) **Ordinary Commission** – fixed % on total sales. 2) **Del-credere Commission** – extra commission for selling on credit and guaranteeing payment. 3) **Overriding Commission*…