Accounting and the consignor

In its report dealer-agent, the agent merely undertakes to sell goods on behalf of the merchant at the best possible price. For these services, receive compensation in the form of commissions on sales. Until the goods have been sold, remain the property of the dealer and not the agent. This means that the dealer is entitled to the proceeds of the sale of goods shipped, then the agent must pay the dealer proceeds after deducting its fees and expenses.

Usually, each consignment is identified separately, with the opening of a separate account for it and the profit (loss) per consignment is determined once the outcome is known. Goods sent to a recipient shall remain the property of the sender to availability and in the case of a perpetual inventory system of accounting is playing journalised cost.

In the case of a periodic inventory accounting, purchases will be credited to the account. 'Income accounts' The game has a dual purpose: it serves as an account of inventory of assets held by agents as well as shipping income account.

Costs such as rail or sea, or insurance will be paid for each lot. These additional costs are a cost of inventories game and must be charged to 'account book' the appropriate shipping.

Once the sender receives the agent for details regarding the sale of goods, he (the sender) is able to determine the gain or loss of the match. The report received by the agent of reporting or accounting is known as a sales account, and provides more details on the goods received by the agent, sold, costs incurred by the agent, a liability for his fee (commission) and the balance of unsold goods.

So, 'account book' The game contains all the details concerning shipping operations. Therefore, a profit (loss) can be determined and transferred to the account of their overall income. The account balance represents the cost of unsold inventory and is shown, along with other inventories, balance sheets of financial accounting.

The cost of unsold inventory is the initial purchase price plus the proportionate share of all costs related to the game, but excluding commissions. Commission is a function of sales and is therefore a cost of sales that must be amortized against earnings (loss) arising from the specific sales.

When the agent receives the goods, which usually do not make a formal accounting entry, since he does not buy products or belong to him. However, he will keep a record of inventory to record the receipt and sale of goods. An alternative would be to charge a lot received 'accounting account' with the invoice price and credit the sender. When goods are sold the amount will be credited to the 'accounting consignment received account'....