Tiêu đề Financial Accounting Sem 4.pdf ✅

2 Table of Contents UNIT 1: CONSIGNMENT ACCOUNT.......................................3 UNIT 2: BRANCH ACCOUNTING ......................................... 12 UNIT 3: HIRE PURCHASE.................................................... 31 UNIT 4: DEPARTMENTAL ACCOUNTING ............................ 41 UNIT 5: INSURANCE CLAIM .............................................. 58 UNIT 6: PARTNERSHIP ......................................................66
3 UNIT 1: CONSIGNMENT ACCOUNT DEFINITION A consignment is the dispatch of goods by a principal to his agents to be sold by the latter on behalf of and at the risk of the former in consideration of a commission. Parties Relating to Consignment: 1. Consignor (Principal) 2. Consignee (Agent) Key Features of Consignment: • The ownership is retained by the consignor until the sale to the final customer by the consignee. • All expenses and losses relating to consignment are borne by the consignor. • Any expenses paid by the consignee and commission of the consignee are payable by the consignor. This is a liability of the consignor until paid. In such a case, the consignee is treated as a creditor of the consignor. • Any cash sales made by the consignee and collections from debtors by the consignee are receivable from the consignee by the consignor. In such a case, the consignee is treated as a debtor. Documents Relating to Consignment: (A) Proforma Invoice: • This is a document sent by the consignor to the consignee at the time of sending goods. It includes: o Details about goods sent (Quantity) o Probable selling price of goods o Invoice price of the goods, etc. (B) Account Sales: • The documents sent by the consignee to the consignor periodically to inform about the sales made by him during the said period. It helps the consignor to ascertain profit on consignment. It includes: o Sales made by the consignee during this period at what price o Expenses paid by the consignee relating to the consignment o Unsold goods at the godown of the consignee o Commission of the consignee o Any abnormal loss and normal loss at the godown, etc.