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CPT Accountancy

This test contains questions on consignment accounts.

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Questions

Question 1 Multiple Choice (Single Answer)

The relationship between the consignor and consignee is like

  1. buyer-seller relationship
  2. debtor-creditor relationship
  3. principal-agent relationship
  4. banker-customer relationship
  5. none of these
Question 2 Multiple Choice (Single Answer)

Who bears the risk of the uninsured consignment goods, if these are destroyed in the transit or in the godown of consignee without anyone's negligence?

  1. Consignor
  2. Consignee
  3. Insurance company
  4. Both consignor and consignee
  5. Government
Question 3 Multiple Choice (Single Answer)

Consignment deals with

  1. both movable and immovable goods
  2. only movable goods
  3. only immovable goods
  4. neither movable nor immovable goods.
  5. none of these
Question 4 Multiple Choice (Single Answer)

What is the nature of consignment account?

  1. Real account
  2. Personal account
  3. Representative personal account
  4. Nominal account
  5. All of these
Question 5 Multiple Choice (Single Answer)

What is the consideration for consignor and consignee in the consignment contract?

  1. Commission for consignor and profit for consignee
  2. Profit for consignor and commission for consignee
  3. Commission for consignor and consignee
  4. Profit for consignor and consignee
  5. Commission for consignor and nothing for consignee
Question 6 Multiple Choice (Single Answer)

The periodical statement rendered by consignee to consignor is called

  1. proforma invoice
  2. account sales
  3. invoice
  4. account statement
  5. none of these
Question 7 Multiple Choice (Single Answer)

In consignment,

  1. possession of goods is with consignor while ownership remains with consignee
  2. possession of goods is with consignee and consignor
  3. possession of goods is with consignee while ownership remains with consignor
  4. ownership of goods is with consignee and consignor
  5. possession of goods is with consignee while ownership does not remain with consignor.
Question 8 Multiple Choice (Single Answer)

The commission paid to the consignee for bearing the loss on account of non recovery of debts from cusomers is called

  1. del-credre commission
  2. ordinary commission
  3. special commission
  4. over-riding commission
  5. all of these
Question 9 Multiple Choice (Single Answer)

The consignor drew a bill on consignee as advance for the goods sent to him. The bill is discounted from the bank. The amount of discount will be

  1. debited to consignment account
  2. debited to consignee account
  3. debited to profit and loss account
  4. credited to profit and loss account
  5. trading account
Question 10 Multiple Choice (Single Answer)

The abnormal loss is valued at

  1. cost price only
  2. cost price plus proportionate expenses
  3. market price
  4. invoice price
  5. normal selling price
Question 11 Multiple Choice (Single Answer)

Which of the following is an example of recurring expenses?

  1. Freight paid by consignor
  2. Freight paid by consignee
  3. Transit insurance
  4. Custom duty
  5. Advertisement by consignee
Question 12 Multiple Choice (Single Answer)

Which of the following is generally considered a normal loss?

  1. Leakage of oil during transit
  2. Loss due to faulty packaging
  3. Loss due to theft
  4. Loss due to fire
  5. Loss due to negligence
Question 13 Multiple Choice (Single Answer)

How will you account for the normal loss of goods in consignment?

  1. Debited to consignment account
  2. Credited to consignment account
  3. Debited to profit and loss account
  4. Adjusted while valuing the unsold stock
  5. Totally ignored from accounting in consignment
Question 14 Multiple Choice (Single Answer)

The unsold stock at the end of consignment for the consignor is considered as

  1. an expense
  2. an income
  3. an asset
  4. a liability
  5. a loss
Question 15 Multiple Choice (Single Answer)

The amount of abnormal loss on the goods sent on consignment is shown on

  1. credit side of the consignment account
  2. debit side of the consignment account
  3. debit side of consignee account
  4. credit side of consignee's account
  5. dedited to goods sent on consignment account
Question 16 Multiple Choice (Single Answer)

The balance of goods sent on consignment account is transferred to

  1. debit side of trading account
  2. credit side of trading account
  3. debit side of profit and loss account
  4. credit side of profit and loss account
  5. consignee account
Question 17 Multiple Choice (Single Answer)

If del-credre commission is not given to consignee, who bears the risk of non recovery of payment from the customers?

  1. Consignor
  2. Consignee
  3. Both consignor and consignee
  4. Neither consignor, nor consignee
  5. Insurance company
Question 18 Multiple Choice (Single Answer)

Madhav consigns goods of the cost price Rs. 1, 20,000 to Divesh at proforma invoice price showing 20% profit on invoice price. Calculate the invoice value of goods sent to Divesh.

  1. Rs. 1, 50,000
  2. Rs. 1,44,000
  3. Rs. 90,000
  4. Rs. 1,40,000
  5. Rs. 1,00,000
Question 19 Multiple Choice (Single Answer)

Rytham consigns goods of the proforma invoice value of Rs. 2, 00,000 to Somya charging 25% profit on cost price. What is the amount of loading?

  1. Rs. 1 ,60,000
  2. Rs. 50,000
  3. Rs. 40,000
  4. Rs. 2, 50,000
  5. Rs. 2, 40,000
Question 20 Multiple Choice (Single Answer)

Virat consigned 5,000 jars to Mohinder invoiced at Rs. 240 per jar which is 20% above cost. Calculate the cost price of goods consigned.

  1. Rs. 2, 00,000
  2. Rs. 10,00,000
  3. Rs. 14,00,000
  4. Rs. 9,60,000
  5. Rs. 15,00,000
Question 21 Multiple Choice (Single Answer)

Anu consigned 200 sets of coffee mugs to Manu at proforma invoice price of Rs. 80 each, charging 10% on invoice price. She spent Rs. 3,000 on carriage and Rs. 2,000 on insurance of goods. Manu sold 150 sets @ Rs. 120. She paid Rs. 1,000 on clearing charges, Rs. 1,500 for godown rent. She charged 10% commission on invoice price and 30% on surplus over the invoice price. Calculate the commission earned by Manu.

  1. Rs. 1,200
  2. Rs. 3,000
  3. Rs. 1,800
  4. Rs. 3,600
  5. Rs. 7,200
Question 22 Multiple Choice (Single Answer)

Shalu consigned 200 sets of coffee mugs to Anjali at proforma invoice price of Rs. 80 each, charging 10% on invoice price. She spent Rs. 3,000 on carriage and Rs. 2,000 on insurance of goods. Manu sold 150 sets @ Rs. 120. She paid Rs. 1,000 on clearing charges, Rs. 1,500 for godown rent. She charged 10% commission on invoice price and 30% on surplus over the invoice price. Calculate the profit or loss on consignment.

  1. Profit Rs. 1,200
  2. Loss Rs. 2,600
  3. Profit Rs. 1,800
  4. Loss Rs. 1,800
  5. Profit Rs. 700
Question 23 Multiple Choice (Single Answer)

Anu consigned 200 sets of coffee mugs to Manu at proforma invoice price of Rs. 80 each, charging 10% on invoice price. She spent Rs. 3,000 on carriage and Rs. 2000 on insurance of goods. Manu sold 150 sets @ Rs. 120. She paid Rs. 1,000 on clearing charges, Rs. 1,500 for godown rent. She charged 10% commission on invoice price and 30% on surplus over the invoice price. Calculate the amount of closing stock.

  1. Rs. 5,500
  2. Rs. 5,250
  3. Rs. 4,250
  4. Rs. 4,700
  5. Rs. 5,875
Question 24 Multiple Choice (Single Answer)

Rohit from Goa consigned goods to Sanjeev of Ludhiana of the proforma invoice value of Rs. 5,00,000. He spent Rs. 1,00,000 on sending the goods. He drew a bill of Rs. 1,50,000 on Sanjeev as advance. At the end of the period, the goods of invoice value of Rs. 1,50,000 are unsold. Rohit wants to maintain proportionate advance. What should be the amount of advance so maintained?

  1. Rs. 45,000
  2. Rs. 1,50,000
  3. Rs. 37,500
  4. Rs. 75,000
  5. None of these
Question 25 Multiple Choice (Single Answer)

Manoj consigned 500 sets of plastic mugs of cost price of Rs. 40 each to Akash of Pune at an invoice price showing 50% above cost price. Akash was allowed commission @ 10% of invoice value of mugs and 25% for excess of invoice price. He sold 350 mugs @ Rs. 80 per set. Calculate the commission payable to him.

  1. Rs. 2800
  2. Rs. 3850
  3. Rs. 2100
  4. Rs. 1,750
  5. Rs. 4550
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