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  • Digg it UP - Accounting And The Consignor

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    e case of a perpetual accounting inventory system the consignment is journalised at cost.

    In the case of a periodic accounting inventory system, the purchases account will be credited. The

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    In the dealer-agent relationship, the agent merely undertakes to sell the goods on behalf of the dealer at the best possible price. For these services, he receives compensation in the form of commission on the sales. Until the goods have been sold, they remain the property of the dealer and not of the agent. This means that the dealer is entitled to the proceeds from the sale of the goods dispatched, so the agent is obliged to pay the dealer the proceeds after deducting his commissions and expenses.

    Usually each consignment is identified separately, by the opening of an independent account for it and the profit (loss) per consignment is determined as soon as the result is known. Goods sent to a consignee remain the property of the consignor until sold and in the case of a perpetual accounting inventory system the consignment is journalised at cost.

    In the case of a periodic accounting inventory system, the purchases account will be credited. The

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    mmission on the sales. Until the goods have been sold, they remain the property of the dealer and not of the agent. This means that the dealer is entitled to the proceeds from the sale of the goods dispatched, so the agent is obliged to pay the dealer the proceeds after deducting his commissions and expenses.

    Usually each consignment is identified separately, by the opening of an independent account for it and the profit (loss) per consignment is determined as soon as the result is known. Goods sent to a consignee remain the property of the consignor until sold and in the case of a perpetual accounting inventory system the consignment is journalised at cost.

    In the case of a periodic accounting inventory system, the purchases account will be credited. The

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    oods dispatched, so the agent is obliged to pay the dealer the proceeds after deducting his commissions and expenses.

    Usually each consignment is identified separately, by the opening of an independent account for it and the profit (loss) per consignment is determined as soon as the result is known. Goods sent to a consignee remain the property of the consignor until sold and in the case of a perpetual accounting inventory system the consignment is journalised at cost.

    In the case of a periodic accounting inventory system, the purchases account will be credited. The

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    independent account for it and the profit (loss) per consignment is determined as soon as the result is known. Goods sent to a consignee remain the property of the consignor until sold and in the case of a perpetual accounting inventory system the consignment is journalised at cost.

    In the case of a periodic accounting inventory system, the purchases account will be credited. The

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    e case of a perpetual accounting inventory system the consignment is journalised at cost.

    In the case of a periodic accounting inventory system, the purchases account will be credited. The consignment 'accounting account' has a twofold purpose: it serves as an inventory account for goods held by agents and also as a consignment income account.

    Costs such as rail or sea freight or insurance will be incurred on each consignment. These additional costs form part of the cost of the consignment inventory and must be debited to the appropriate consignment 'accounting account'.

    As soon as the consignor receives details from the agent regarding the sale of goods, he (the consignor) is able to determine the profit or loss on the consignment. The notice or accounting report received from the agent is known as an account sale and provides full details about the goods received by the agent, goods sold, cost incurred by the agent, a debit for his compensa

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