Chapter Exam

Chapter 2: Consignment Accounts — Online MCQ Test

Q: Who is the person that sends goods on consignment?

Answer: C. Consignor — The consignor is the owner of the goods who dispatches them to the consignee for sale.

Q: If goods are sent on consignment, ownership of the goods remains with the:

Answer: C. Consignor — Goods on consignment are not sold at the time of dispatch, so ownership continues to remain with the consignor.

Q: A consignment of 1,000 units was sent at cost price of ₹50 each. Goods worth 100 units were destroyed by fire before reaching the consignee. This loss is:

Answer: B. Abnormal loss and separately recognized — Loss before reaching the consignee due to fire is abnormal and should be treated separately, not absorbed in stock valuation.

Q: A consignor sends goods costing ₹80,000 to a consignee at an invoice price of ₹1,00,000. What is the loading on goods sent?

Answer: A. ₹20,000 — Loading is the excess of invoice price over cost price. Here, ₹1,00,000 minus ₹80,000 equals ₹20,000.

ACCOUNTANCY · CLASS 12 INTERMEDIATE 2 YEAR · Telangana State Board

Practice Chapter 2: Consignment Accounts with a free chapter-wise online MCQ test for Telangana State Board CLASS 12 INTERMEDIATE 2 YEAR ACCOUNTANCY. This chapter covers: This chapter details consignment nature consignor consignee roles proforma invoice account sales valuation of unsold stock normal abnormal losses and consignment accounting entries.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 2: Consignment Accounts — Important Questions & Answers (FAQ)

Frequently asked questions from Telangana State Board CLASS 12 INTERMEDIATE 2 YEAR ACCOUNTANCY — Chapter 2: Consignment Accounts, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is a consignment?

A. Sale of goods by one business to another business on credit
B. Transfer of goods by owner to an agent for sale on his behalf ✓
C. Purchase of goods from a supplier for resale
D. Exchange of goods between two traders

Answer: B. Transfer of goods by owner to an agent for sale on his behalf
In consignment, the owner of goods sends them to an agent called the consignee to sell on behalf of the owner. Ownership remains with the consignor until sale.

Who is the person that sends goods on consignment?

A. Consignee
B. Debtor
C. Consignor ✓
D. Broker

Answer: C. Consignor
The consignor is the owner of the goods who dispatches them to the consignee for sale.

If goods are sent on consignment, ownership of the goods remains with the:

A. Consignee
B. Customer
C. Consignor ✓
D. Bank

Answer: C. Consignor
Goods on consignment are not sold at the time of dispatch, so ownership continues to remain with the consignor.

A consignment of 1,000 units was sent at cost price of ₹50 each. Goods worth 100 units were destroyed by fire before reaching the consignee. This loss is:

A. Normal loss and included in stock valuation
B. Abnormal loss and separately recognized ✓
C. Trading loss and ignored
D. Profit on consignment

Answer: B. Abnormal loss and separately recognized
Loss before reaching the consignee due to fire is abnormal and should be treated separately, not absorbed in stock valuation.

A consignor sends goods costing ₹80,000 to a consignee at an invoice price of ₹1,00,000. What is the loading on goods sent?