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WAEC Financial Accounting 1995 Question 32

Question 32

Consignment Accounts

In the consignee's records, the accounting treatment of expenses paid for on behalf of the consignor is debit

  1. A.Consignor's Account, credit Cash Account.
  2. B.Cash Account, credit Consignor's Account
  3. C.Consignee's Account, credit Cash Account
  4. D.Cash Account, credit Consignee's Account.
  5. E.Account Sales, credit Consignee's Account.
Show the answer and explanation

Answer: A (Consignor's Account, credit Cash Account.)

Explanation

Expenses paid for the consignor are charged to him: debit consignor, credit cash.