3. CONSIGNMENT ACCOUNT
* Introduction
Large scale productions needs large
Scale differents techniques are used to
Expand the market and to increase
Sales. Consignment sale is one among
Them. With the expansion of market beyond local sale through middlemen and Agents has become a
common feature. Manufacturers cannot personally sell their products to their Customers at for away
peaces. Their for
Traders are appointed as Agents to sell the products on behalf of the producers foreign commission it is
called consignment sale.
• Meaning :-
Consignment is referred as sending of goods by a manufacturer [consignmer] to his agent [consignee)for
the purpose of sale on his behalf and for in
Commission.
• Features of consignment :-
The Important features of consignment are:-
1.Objectives : the main objective of consignment are to expand the market and to increase the sales.
• 2.Agency :- consignment is a sale through agents manufactures appoint agent and sends goods to
agent for the purpose of sale.
3 .Parties:-The person who sends goods to his agent on consignment is called the consigner. And the
agent to whom goods are send for sale in return for commission is called the consignee.
4 Relationship;
The Relationship that exist between the consigner and the consignee is that of a principal and an
agent. This Relationship is governed by the ‘law of agency’
