Top 100+ Consignment Stock Interview Questions And Answers
Question 1. Give The Journal Entry In The Books Of Consignor For Valuation Of Stock?
Answer :
Stock On Consignment A/C Dr xxx
To Consignment A/C xxx
Question 2. What Is The Accounting Treatment For Normal Loss?
Answer :
The cost of ordinary loss is taken into consideration as a part of the value of production wherein it happens. If regular loss units have any realisable scrap price, the procedure account is credited through that amount. If there's no odd advantage, then there's no necessity to preserve a separate account for normal loss.
Production Planning and Control Interview Questions
Question three. What Is The Difference Between Consignment And Sales?
Answer :
When the goods are brought to the agent by the proprietor for selling purposes is known as consignment whereas a transaction wherein goods are exchanged for a charge is known as a sale.
The Parties involved in consignment are Consignor and consignee sharing the relationship of a primary and agent whereas the parties concerned in sale are seller and buyer sharing the relationship of a creditor and debtor.
Question 4. When Is Stock Consignment Account Opened?
Answer :
Some worries choose not to combine price of products despatched on consignment, sales and costs in the equal account. In one of these case, an account, known as Consignment Stock Account is opened and debited by means of the fee of beginning inventory in the arms of the consignee and the value of products despatched.
Question five. Give The Journal Entry In The Books Of Consignee On Commission Being Earned?
Answer :
Consignor Personal A/C Dr xxx
To Commission A/C xxx
Risk Management Interview Questions
Question 6. How To Calculate Value Of Unsold Stock?
Answer :
Value of unsold stock= Cost Price of Closing Stock+ Proportionate non- Recurring Expenses
Question 7. Explain The Three Accounts Maintained By Consignor?
Answer :
Consignment Account: It is a nominal account. It is in truth a Special Trading and Profit and Loss Account. The stability, on this account, represents both profit or loss on consignment that is subsequently transferred to General Profit and Loss Account.
Consignee's Personal Account: It is a private account. It is specially organized to check the amount due from the consignee.
Goods Sent On Consignment Account: it is a actual account.
Stock Market Interview Questions
Question 8. How Is Abnormal Gain Calculated?
Answer :
Abnormal Gain= Actual Production-Expected Production.
Question 9. Give The Journal Entry In The Books Of Consignee On Sales Being Affected?
Answer :
Cash ( or Bank) A/C Dr xxx
To Consignor's Personal A/C xxx
Production Supervisor Interview Questions
Question 10. What Is Normal Loss?
Answer :
Normal loss manner that loss that is inherent inside the processing operations. It can be predicted or anticipated earlier i.E. At the time of estimation.
Question eleven. Give The Journal Entry In The Books Of Consignee For Valuation Of Stock?
Answer :
No Entry is to be made inside the books of consignee for valuation of inventory.
Cost of products offered Interview Questions
Question 12. What Do You Mean By Valuation Of Unsold Stock In Accounting For Consignment Of Goods?
Answer :
The inventory mendacity inside the palms of consignee at the give up of accounting year is worth price or marketplace charge whichever is less. The cost of unsold inventory or last stock must be worth cost to the consignor plus proportional non- recurring fees incurred with the aid of the consignor and consignee.
Production Planning and Control Interview Questions
Question 13. Who Is A Consignee?
Answer :
In a agreement of carriage, the consignee is the entity who's financially accountable ( the customer) for the receipt of a shipment. Generally, but no longer constantly,the consignee is equal because the receiver.
Question 14. What Is Abnormal Gain?
Answer :
If the real lack of a technique is less than that of anticipated loss then the difference between the two may be treated as extraordinary advantage.
Question 15. Who Is A Consignor?
Answer :
Person or firm ( normally the vendor) who delivers a consignment to a service for transporting it to a consignee ( normally the customer) named inside the transportation documents. Ownership ( identify) of the goods stays with the consignor till the consignee pays for them in complete.
Joint Stock Company Interview Questions
Question sixteen. What Is An Invoice?
Answer :
An bill is a industrial document that itemizes a transaction between a customer and a vendor. An bill will generally include the amount of buy,price of products and / or services, date, parties worried, unique bill variety and tax records.
Question 17. Give The Journal Entry In The Books Of Consignor For Commission Payable To The Consignee.?
Answer :
Consignment A/C Dr xxx
To Consignee's Personal A/C xxx
Stockholders Equity Interview Questions
Question 18. Give The Journal Entry In The Books Of Consignor For Expenses Incurred By The Consignee.?
Answer :
Consignment A/C Dr xxx
To Consignee's Personal A/C xxx
Risk Management Interview Questions
Question 19. What Is The Accounting Treatment For Abnormal Loss?
Answer :
Process account is to be credited with the aid of strange loss account with fee of fabric, labor and overhead equivalent to exact gadgets and the loss because of strange is transferred to costing Profit and Loss account.
Question 20. Give The Journal Entry In The Books Of Consignee On Commission Being Earned.?
Answer :
Consignor Personal A/C Dr xxx
To Commission A/C xxx
Goods and Services Tax Interview Questions
Question 21. What Is Account Sales?
Answer :
When items are dispatched, the consignor makes out a " Proforma Invoice" this is, a statement which looks like a ordinary bill however which does no longer make the consignee responsible to pay the amount named. This proforma invoice is referred to as Account Sales.
Question 22. What Is Del Credere Commission?
Answer :
The additional fee for which the consignee ensures money owed is known as Del Credere Commission. The agent is liable for awful debts however now not for loss due to dispute among the buyer and the vendor. Del Credere Commission is payable on overall income and no longer merely on credit score income.
Question 23. What Is Stock Reserve?
Answer :
Stock reserve or buffer stock is a stock amount that is based at the normal common anticipated consumption during the lead-time to top off depleted stock.
Good Manufacturing Practice (GMP) Interview Questions
Question 24. Give The Journal Entry When Consignment Is Partly Sold?
Answer :
Stock on Consignment A/C Dr xxx
To Consignment A/C xxx
Stock Market Interview Questions
Question 25. Give The Journal Entry In The Books Of Consignor On Dispatch Of Goods?
Answer :
Consignment A/C Dr xxx
To Goods Sent on Consignment A/C xxx
Question 26. What Is Abnormal Loss?
Answer :
Abnormal loss manner that loss which is caused by surprising or ordinary situations which includes accidents, machine breakdown, substandard fabric and many others. From the accounting factor of view we can say that ordinary loss is that loss which occured over and above ordinary loss.
Question 27. What Is The Journal Entry In The Books Of Consignor For Profit?
Answer :
Consignment A/C Dr xxx
To Profit and Loss A/C xxx
Production Supervisor Interview Questions
Question 28. What Is Consignment?
Answer :
Consignment is the act of consigning, the act of giving over to another man or woman or agent's price, custody or care any material or goods but retaining prison until the cloth or goods are bought
Question 29. What Is The Accounting Treatment For Abnormal Gain?
Answer :
The value of abnormal advantage is transferred to the debit facet of the relevant system and in the long run closed by crediting it to the costing Profit and Loss account.
Question 30. Why Is Consignment Not A Sale?
Answer :
Following are the motives that explain why consignment is not a sale:−
Ownership: Ownership of products want to be transferred from seller to buyer in case of sale, but possession of products remains with the consignor, until the products are sold through the consignee.
Risk: In case of a consignment, commonly, risk remains with the consignor inside the event of goods being lost or destroyed.
Relationship: The relation between a seller and a purchaser might be of debtor and creditor in case wherein items are offered on credit basis. On the other hand, the connection among a consignor and a consignee is that of fundamental and agent.
Goods Return: Usually, the sold items cannot be back returned; however, if there is any production disorder or any other technical fault, seller is obliged to take them returned. On the other hand, consignee can also go back the unsold stock of goods to consignor anytime.
Question 31. What Is The Valuation Of Unsold Consignment?
Answer :
Valuation of unsold stock can be accomplished like a final stock of a Trading challenge and need to be worth the value or the marketplace rate whichever is low.
This inventory could be valued at:
Proportionate fee charge and
Proportionate direct prices.
Here, proportionate direct costs mean — all expenses incurred via the consignor and the prices of consignee, which might be incurred by him until the products reach the warehouse.
