2nd Year Principles of Accounting Chapter 3 TestConsignment Accounts

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. Consignment account is a nature of:

   1. Personal account

   2. Real account

   3. Nominal account

   4. “a” and “b”

2. When goods are dispatched by the consigner to the consignee, it will be from consignor’s view point:

   1. Consignment inward

   2. Consignment outward

   3. Consignment in transit

   4. All of these

3. In consignee’s book, the acceptance given of a bill should be debited to:

   1. Bill receivable account

   2. Bill payable account

   3. Consignee’s account

   4. Consignor’s account

4. The entry for final payment by accepting a bill by consignee in consignee’s book will be:

   1. Consignor’s account …Dr
      To bill payable account

   2. No entry

   3. Bill payable account …Dr
      To consignor’s account

   4. Cash account …Dr
      To bill payable account

5. In book of consignor, profit on consignment should be credited to:

   1. Profit and loss account

   2. Cash account

   3. Consignee’s account

   4. Consignment account

6. In consignment, if the consignee receives the del credited commission the entry for bad debts in consignee’s book will be:

   1. Bad debts account…Dr
      To sundry debtors account

   2. No entry

   3. Bad debts account …Dr
      To consignor’s account

   4. Commission account ..Dr
      To sundry debtors account

7. When cash is received from debtors, by consignee, the entry in consignor’s book will be:

   1. Cash account …Dr To consignee’s account

   2. No entry

   3. Consignee’s account …Dr
      To consignment account

   4. Cash account …Dr To sundry debtors account

8. In consignment, if the consignee does not receive the del credited commission, the entry in consignee’s book for bad debts will be:

   1. Bad debts account …Dr
      To sundry debtors account

   2. No entry

   3. Consignee’s account …Dr
      To sundry debtors account

   4. Bad debts account…Dr
      To consignor’s account

9. When goods are dispatched by the consignor to the consignee it will be from consignee’s view point:

   1. Consignment outward

   2. Consignment in past

   3. Consignment in future

   4. Consignment inward

10. The businessmen can increase the sale of their products:

    1. By opening their own branches in different parts of the countries and abroad

    2. By adopting agents in their own country as well all as abroad

    3. By a huge head office building

    4. A and B