Directions: Choose the correct option for the given question.

Which account will be credited in the books of consignor, when expenditure incurred to the consignee in connection with the consignment?

When the consignor incurs expenditure on behalf of the consignee (like expenses for sending goods), the consignee's account is credited in the consignor's books. This is because the consignee is ultimately responsible for such expenses, which will be adjusted from the sale proceeds. The consignment account tracks the overall profit/loss, while the consignee account is a personal account that records mutual dues.