Consignment Account

This is an aspect of account that is being prepared in a place where one party who is acting as an agent sells goods on behalf of another party that is being called the dealer. The agent and the dealer sometimes live very far part, often times different Countries For this type of transaction, the agent is called the consignee whereas the dealer is called the consignor

It is vital to note that the said consignor the goods consigned to him. He is merely offering a service for which he is paid a commission. 

Accordingly, all the books of account are prepared in the books of the consignor in order to enable him determine the profit or loss in the transaction.

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