Question

Expenses incurred on consignment are debited to ____________.​

Answer 1

Answer:

In the books of consignee, the expenses incurred by him on consignment are debited to the consignor's A/c. This is because the consignee incurs these expenses on behalf of the consignor and hence, charges these expenses to the consignor's A/c.

Answer 2

Answer:

In the books of the consignee, the expenses incurred by him on consignment are debited in the consignor's account as these expenses are borne by the consignor. The consignee incurs such expenses on behalf of the consignor as he acts as an agent to the principal (consignor).

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