Observation

The performance of the candidates on this question was average. However, some of the candidates failed to differentiate between consignor and consignee while some of them defined consignment instead of consignment account.

(a)        Consignment account is an account for goods sent to an agent who will sell them on behalf of his principal.

(b)        Consignor is the principal party who sends goods to the agent for sale. He
is the actual and rightful owner of the goods.

(c)        Consignee is the recipient of the goods sent outward by the
consignor. He stores and agrees to sell goods on behalf of the principal and receives an agreed commission on sale.