Question

Name items which are recorded at the invoice price in the Consignment Account. Give reasons for consigning the goods at the invoice price.

Answer 1

Consigned goods are reported at invoice price because the consignor wanted to keep the profits of consignment a secret from the consignee.

Consigned goods are goods sent to a consignee to be sold. These goods are not automatically recorded as Sales revenue unless the consignee sells them to customers.