Multiple choice

Abnormal loss on consignment is credited to

  1. profit and loss account

  2. consignee's account

  3. consignment account

  4. personal account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Abnormal loss on consignment is credited to the Consignment account because it reduces the value of goods on consignment. The consignment account tracks costs and revenue related to the consigned goods. When abnormal loss occurs, it's credited to reduce the consignment account balance, reflecting that fewer goods are available for sale.

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