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Video instructions and help with filling out and completing What is a nominal consignee
Hello friends welcome to let students see so we have already seen the basic concepts of a consignment we have seen journal entries we have seen valuation of stock we have also done three problem solves on the consignment accounting in today's session we are going to learn in consignment accounting with what will be the accounting effect if the goods are invoice at above the course Music now what is this when consignor send goods to consign e and cans any further saves the quotes it is quite possible that the designee knows the profit which is owned by the pensioner because when consignor send the goods if the cost of the boots is 100 and consignor send the goods at 100 rupees to consign e and khazzani save those goods at 125 then consign II know that that is the profit of 25 apiece so many a times it happens that consignor does not want to disclose the actual cost to the consign e organs I never wants to hide the hidest profit if the concern he knows the profit it is quite possible that consigning may enter into competition in future with the consignor and consign he directly purchase the goods from the other dealers and he himself say the woods in turn off on the agency basis so to avoid this provable competition got to hide the profit consignor might send the goods to consign e at a price which is higher than the in cost price which is known as invoice price so what consignor does consignor add some extra profit to the cost and send the goods at the invoice price now for example if the cost of goods to consignor is hundred rupees consignor might an ad 20 rupees profit and sends the woods to consign e at 120 rupees now this invoice price is not a selling price yet okay it is just the fries at which consignor transfer goods to the pan Johnny now for the consignor might cartel fans I need to see all those goods at 120 it says so consign even PU that he has received the boots at 120 maybe worse and xenon has already added the profit of wenting and consign e is instructed to save those books at 120 itself so consign evil not know how much profit is the consignor earning on this transaction or consignor might say that this 120 worth of goods you have to say that 150 so in that case consigning feels that is a profit of 30 rupees but instead consignor is earning a profit of 50 rupees because the cost was 100 in was price was 120 but the further selling price was 115 so consignor is earning a profit of 50 rupees but consignees team that there is a profit of only 30 rupees so for all this reason Kanchana what does come at times consignor does not want since i need to know the cost.