Course:
CMA Foundation
1) The owner of consignment stock is:
(a) Consignor (b) Consignee
(c) Debtors (d) None
2) The consignee is a/an:
(a) Agent (b) Buyer
(c) Bailee (d) Creditor
3) When the Consignor sends goods to consignee, he prepares a ________.
(a) Account Sale (b) Cash Memo
(c) Proforma Invoice (d) Credit Memo
4) A periodic statement furnished by the consignee to consignor is ________.
(a) Proforma Invoice (b) Debit Note
(c) Account Sales (d) None of the above
5) Which of these accounts are not opened in the books of consignor.
(a) Consignment A/c (b) Commission A/c
(c) Goods sent on consignment A/c (d) Consignee Personal A/c
6) If del-credere commission is not allowed then in case of bad debts which account should be
credited in the books of Consignor:
(a) Consignee A/c (b) Profit & Loss A/c
(c) Bad Debts A/c (d) Bank A/c
7) In the Books of Consignor, the Profit of Consignment will be transferred to:
(a) General Trading A/c (b) General P&L A/c
(c) Capital A/c (d) None of the above
8) Closing Stock with consignee is shown in the Balance sheet of ________.
(a) Consignee (b) Consignor
(c) Agency (d) None of the above
9) If consignor drawn a bill on consignee and discounted it with the banker the discounting charges
will be debited in:
(a) General P&L A/c (b) Consignment A/c
(c) Consignee A/c (d) Debtors A/c
10) The unsold stock on consignment is valued at:
(a) Original cost of goods
(b) Original cost-plus non-recurring (direct expenses) incurred by both consignor and consignee
(c) Original cost-plus non-recurring (direct expenses) incurred only by the consignor
(d) Original cost plus all expenses
11) X of Kolkata sends out 100 boxes to Y of Delhi costing Rs 200 each. Consignor’s expenses Rs 4,000.
Consignee’s non-recurring expenses Rs 900 & recurring Rs 500. 1/10th of the boxes was lost in
transit. 2/3rd of the boxes received by consignee were sold. The amount of consignment stock
will be:
(a) Rs 7,200 (b) Rs 7,500
(c) Rs 7,000 (d) Rs 6,000
12) PARIKH & CO. of Nagpur consigned D of Delhi 1000 kgs of Oil @ 13 per Kg. Consignor spent Rs.
750 on cartage, insurance and freight. On the way due to leakage 50 kg. of oil was spoiled (normal
loss). D spent Rs. 500 on Octroi and carriage. His selling expenses were Rs. 400 on 800 kg. of oil
sold. Value of consignment stock will be:
(a) Rs 2,250 (b) Rs 2,000
(c) Rs 2,200 (d) None of the above.
13) X of Kolkata sends out 400 bags to Y on Delhi costing Rs.200 each. Consignor expenses Rs.2,000.
Y expenses non selling Rs.2,000, selling Rs.1,000. 300 bags were sold by Y. Value of consignment
stock will be:
(a) Rs 20,400 (b) Rs 20,200
(c) Rs 20,000 (d) Rs 21,000
14) A of Ahmedabad consigned goods of Rs. 10,000 to M of Madras and paid Rs. 500 for expenses.
The consignee paid Rs. 100 for freight and Rs. 50 godown rent 80% of goods were sold and
commission of Rs. 500 was paid. Find the value of closing stock.
(a) Rs 2,000 (b) Rs 2,120
(c) Rs 2,100 (d) Rs 2,030
15) Main objective of sending goods at invoice price is to____
(a) Reduce Profit (b) Reduce Income Tax
(c) Keep the real profit a secret (d) None of the above
16) Consignment stock will be recorded in the balance sheet of consignor on asset side at:
(a) Invoice Price less stock reserve (b) Invoice Price
(c) At lower than cost price (d) 10% less than invoice price
17) Stock reserve is credited to adjust ____
(a) Gross Profit
(b) Valuation of closing stock to cost
(c) Valuation of opening stock to cost
(d) 10% less than invoice price
18) Goods sent to consignment at cost + 33ଵ/ଷ
. The percentage of loading on invoice price will be:
(a) 25% (b) 33.33%
(c) 20% (d) None of the above
19) X send out of costing Rs. 80,000 to Y of Mumbai so as to show 20% profit on invoice value. 3/5th
of the goods received by consignee is sold at 10% above invoice price. The amount of sale value
will be:
(a) Rs. 66,000 (b) Rs. 60,000
(c) Rs. 50,400 (d) Rs. 52,800
20) Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price.
1/10th of the goods was lost in transit. 1/2 of the balance goods were sold. The amount of stock
reserve on consignment stock will be:
(a) Rs. 4,500 (b) Rs. 9,000
(c) Rs. 11,250 (d) None
21) X sends out 500 bags to Y, costing Rs. 400 each at an invoice price of Rs. 450 each. Consignor’s
expenses Rs. 4,000; consignee’s expenses freight Rs. 1000, selling Rs. 2000. 400 bags were sold.
The amount of Consignment Stock reserve will be:
(a) Rs. 5,000 (b) Nil
(c) Rs. 10,000 (d) Rs. 10,200
22) P of Delhi sends out 100 boxes of toothpaste costing Rs.200 each. Each box consists of 12 packets.
60 boxes were sold by consignee at Rs.20 per packet. Amount of sale value will be:
(a) Rs. 14,400 (b) Rs. 12,000
(c) Rs. 13,200 (d) Rs. 14,200
23) Balance in consignment account shows:
(a) Stock lying with consignee
(b) Profit or Loss on consignment
(c) Amount due from consignee
(d) Amount due to consignee
24) Goods sent on consignment Rs. 7,60,000. Opening consignment stock Rs. 48,000. Cash sales Rs.
7,00,000. Consignor’s expenses Rs. 20,000. Consignee’s expenses Rs. 12,000. Commission Rs.
20,000. Closing consignment stock Rs. 3,00,000. The profit on consignment is:
(a) Rs. 1,50,000 (b) Rs. 1,40,000
(c) Rs. 92,000 (d) Rs. 84,000
25) Mohan consigned 50 cases at Rs. 350 each to B of Varanasi to sell it on consignment basis.
Consignor paid 1,800 for freight and insurance. all the cases were sold for Rs. 28,000. Selling
expenses paid by agent Rs. 900 and their commission to Rs. 1,000. Consignment profit will be:
(a) Rs. 7,000 (b) Rs. 6,800
(c) Rs. 8,000 (d) None of the above
26) Suresh of Delhi consigned 600 fans to Naresh of Agra to be sold at his risk. The cost of each fan
is Rs 300. Suresh paid Rs 6,000 as freight. Naresh paid Rs 1,500 for octroi; Rs 3,500 for godown
rent. 500 fans were sold for Rs 1,80,000. Naresh was entitled to 4% commission on sale @ Rs 350
per fan and 20% of any surplus price realized. Profit on consignment will be:
(a) Rs. 12,250 (b) Rs. 12,000
(c) Rs. 14,000 (d) Rs. 15,000
27) Abnormal loss is valued like:
(a) Normal Loss (b) Stock in hand
(c) Purchase (d) Sales
28) X of Kolkata send out 1,000 bags to Y of Delhi costing Rs. 200 each. Consignor’s expenses Rs.
2,000. Y’s expenses non-selling Rs. 1,000 & selling Rs. 2,000. 100 bags were lost in transit. Value
of lost in transit will be:
(a) Rs. 20,200 (b) Rs. 20,300
(c) Rs. 20,000 (d) Rs. 23,000
29) Mahindra of Madras sent goods to Jaya of Delhi at an invoice price of Rs. 29,675. He paid freight
Rs. 762; cartage Rs. 231 and insurance Rs. 700. On the way one-fourth of the goods was lost by
fire and claim of Rs. 5,000 was recovered from the insurance company. Calculate abnormal loss.
(a) Rs. 5,000 (b) Rs. 7,842
(c) Rs. 7,419 (d) Rs. 2,842
30) If no del credere commission is paid to the consignee ________ account should be debited for
credit sale in the books of consignee.
(a) Consignee A/c (b) Consignment A/c
(c) Consignment Debtors A/c (d) Consignor A/c
31) X of Kolkata sends out certain goods at cost + 25%. Invoice value of goods sends out Rs. 2,00,000.
4/5th of the goods were sold by the consignee at Rs. 1,76,000. Commission 2% upto invoice value
and 10% of any surplus above invoice value. The amount of commission will be:
(a) Rs. 4,800 (b) Rs. 5,200
(c) Rs. 3,200 (d) Rs. 1,600
32) A sends goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price.
Commission is 10% on sales at Invoice Price and 25% of any surplus realized above IP. 10% of the
goods sent out on consignment, invoice value of which is Rs. 12,500 were destroyed. 75% of the
total consignment is sold by B at Rs. 1,00,000. What will be the commission payable to B?
(a) Rs. 10,937.50 (b) Rs. 16,250
(c) Rs. 10,000 (d) Rs. 9,700
33) Which of the following details are contained in an account sales:
(a) Expenses incurred on behalf of consignor (b) Sales made
(c) Unsold stock left with consignee (d) All of the above
34) Which of the following statement is correct:
(a) Consignee will pass a journal entry in his books at the time of receiving goods from consignor.
(b) Consignee will not pass any journal entry in his books at the time of receiving goods from
consignor.
(c) The ownership of goods will be transferred to consignee at the time of receiving the goods.
(d) Consignee will treat consignor as creditor at the time of receiving goods.
35) If both normal loss and abnormal loss occur at the same stage. Which of them will be assumed to
have occurred before for calculation purpose:
(a) Normal Loss (b) Abnormal Loss
(b) Both of the above (d) None of the above
Mr. X sent 250 units costing Rs. 10,000 each to Mr. Y. The goods were to be sold so as to yield a
gross profit on 20% on sales. Mr. Y sold 150 units @ Rs. 14,200 per unit on credit and 75 units @
Rs. 14,000 for cash. Calculate the commission due to Mr. Y, if:
36) Mr. Y was entitled to a commission of Rs. 500 per unit.
(a) Rs. 1,12,500 (b) Rs. 75,000
(b) Rs. 37,500 (d) None of the above
37) Mr. Y was entitled to an ordinary commission of 5% and del-credere commission of 2%.
(a) Rs. 1,59,000 (b) Rs. 63,600
(b) Rs. 2,22,600 (d) None of the above
38) Which commission is given by the consignor to protect itself from the bad debts:
(a) Ordinary Commission (b) Del-Credere Commission
(b) Overriding Commission (d) None of these
39) 100 tins of oil at Rs. 130 per tin of 15 Kg. each were sent to Bhavnagar by Ahmedabad to be sold
on consignment. He pays Rs. 625 for expenses. Normal loss is considered to be 5%. Calculate the
value of closing stock if the quantity left in 285 kgs.
(a) Rs. 2,600 (b) Rs. 2,470
(b) Rs. 2,725 (d) None of these
40) Loss of stock is said to be normal when –
(a) It is because of bad packing
(b) It is unavoidable and natural
(c) The stock is destroyed in fire
(d) It is loss by theft
41) Panna Lal sends 100 sewing machines on consignment to Ram Lal. The cost of each machine is Rs.
150. Panna Lal spends Rs. 500 on packing and dispatch. Ram Ji Lal received the consignment and
informed that 90 machine have been sold at 180 each. Expenses paid by Ram Ji Lal are freight
Rs. 500, carriage and octroi Rs. 200. Godown rent Rs. 100 and insurance Rs. 150. Ram Ji Lal
entitled to commission of 7 ½ % on sales. Profit on consignment will be—
(a) Rs. 150 (b) Rs. 155
(b) Rs. 200 (d) Rs. 160
42) Goods of the invoice value of Rs. 1,20,000 sent out to consignee at 20% profit on cost. The
loading amount will be –
(a) Rs. 20,000 (b) Rs. 24,000
(b) Rs. 25,000 (d) None
43) X of Kanpur send out 1000 boxes to Y of Delhi, costing Rs. 200 each. at an invoice price of Rs.
220 each. Goods send out on consignment to be credited in general trading A/c will be:
(a) Rs. 2,20,000 (b) Rs. 2,40,000
(b) Rs. 40,000 (d) Rs. 2,00,00
44) On 1st July Krishnan of Chennai consigned 100 bales of cotton to Dheeraj of Hyderabad (Cost
Prize 7,500) at a proforma invoice price of 25% profit on sales, consignment accounted would be
credited for loading by —
(a) Rs. 2,000 (b) Rs. 1,500
(b) Rs. 2,500 (d) Rs. 3,300
45) Goods costing Rs.1,80,000 sent out to consignee to show a profit of 20% on Invoice Price.
Invoice price of the goods will be-
(a) Rs. 2,16,000 (b) Rs. 2,25,000
(b) Rs. 2,10,000 (d) None of the above
46) Stock reserve account is credited, when ___
(a) Reserve is credited for abnormal loss
(b) Goods are invoiced above cost
(c) Some stock is Kept reserved with the consignor
(d) None of these
47) Bharti consigned to Bhawana 1500 Kg. of flour costing 4500.She spent Rs. 307 as forwarding
charges 5% of the consignment was lost in weighting and handling. Bhawana sold 1350 kg of flour
at Rs. 4 kg. Her selling expenses being Rs. 550 and commission at 12 ½ on sales valuation of
closing stock will be—
(a) Rs. 253 (b) Rs. 250
(b) Rs. 350 (d) Rs. 275
48) Consignment stock A/c is a ____
(a) Representative Personal A/c (b) Real A/c
(c) Nominal A/c (d) Personal A/c
49) In Consignment Accounting, consignee account is ________
(a) Real A/c (b) Personal A/c
(c) Nominal A/c (d) None of them
50) In Consignment Accounting, consignment is ________
(a) Real A/c (b) Personal A/c
(c) Nominal A/c (d) None of them
ANSWERS:
1) (a)
2) (a)
3) (c)
4) (c)
5) (b)
6) (a)
7) (b)
8) (b)
9) (b)
10) (b)
11) (b)
12) (a)
13) (d)
14) (b)
15) (c)
16) (a)
17) (b)
18) (a)
19) (a)
20) (c)
21) (a)
22) (a)
23) (b)
24) (b)
25) (b)
26) (a)
27) (b)
28) (a)
29) (d)
30) (c)
31) (a)
32) (a)
33) (d)
34) (b)
35) (a)
36) (a)
37) (c)
38) (b)
39) (c)
40) (b)
41) (b)
42) (a)
43) (a)
44) (c)
45) (b)
46) (b)
47) (a)
48) (b)
49) (b)
50) (c)