Damaged Goods Costing ₹10,000 sold for ₹4,000 on credit to Ram.
you are required to tell:-
1. is the loss is Abnormal or Nomal in nature?
2. Journal entry for the same.
3. Effect on the books of account.
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The consignee tries to sell the goods according to the instructions of the consignor. When the goods are sold he will deduct his expenses, commission,etc., from the sale proceeds and remits the balance to the consignor. If the goods are destroyed, consignee will not be responsible. Its burden will fall on the consignor. There are two types of losses that can occur in consignment :
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