Outward Consignment

A consignment from consignor’s point of view is called outward consignment.

 OR

Dispatch of goods for consignor to consignee is called consignment outward

Parties in Consignment Account

Two parties are involved in Consignment Account

Consignor 

Consignee

 

Consignee

A person who receives the goods from consignor for sale on commission is called consignee.

In a contract of carriage, the consignee is that the person to whom the cargo is to be delivered whether or not by land, sea or air.

If sender dispatches an item to receiver via a delivery service, sender is that the consignor and recipient is that the Consignee.

This is a difficult space of law in that it regulates the mass transportation trade that cannot forever guarantee arrival on time or that product won't be broken within the course of transit. what is more, two other issues ar that unpaid consignors or freight carriers may wish to carry goods till payment is formed, and dishonorable people might request to take delivery in situation of the legitimate consignees. The key to resolving such disputes lies within the documentation. the quality type of contract may be a bill of lading that, in international shipping law, is just a contract for the carriage of goods entered into between the shipper and also the carrier that's not a charter party. it's forever a term of that contract that the carrier should deliver the goods to a specific receiver.

Consignor

A person who sends goods to the agent (consignee) for sale on commission is called consignor.

The shipper, in a contract of carriage, is that the person sending a cargo to be delivered whether by land, sea or air. Some carriers, like national postal entities, use the term "sender" or "shipper" however within the event of a legal dispute the proper and technical term "consignor" will generally be used.

Consignment Account

An account which is prepared to record consignment transaction is called consignment account.

Consignment is that the act of consigning, which is placing any material within the hand of another, but retentive ownership till the goods area unit sold or person is transferred. this may be done for shipping, transfer of goods to auction, or for sale in a very store (i.e., a consignment shop). To consign means to send and therefore consignment means sending product to another person. in case of consignment goods area unit sent to the agent for the aim of sale. The possession of these product remains with the sender. The agent sells the goods on behalf of the sender, in step with his instructions. The sender of products is thought as consignor and the agent is thought as the receiver.

Features of consignment are:

•     The relation between the two parties is that of consignor and receiver and not that of buyer and seller
•     The consignor is entitled to receive all the expenses in connection with consignment
•     The consignee isn't liable for harm of goods during transport or the other procedure product are sold at the chance of consignor. The profit or loss belongs to consignor solely

Suspense Account

A ledger account in which entries are made on a temporary basis when the correct account cannot be immediately identified is called suspense account.

Examples: 

i)  Transfer or balance to the wrong column of the trial balance.

ii)  Omission of balance from trial balance.

iii)  Wrong casting of trial balance.

 A suspense account may be a temporary resting place for associate degree entry end up find yourself in different places once its final destination is decided. There ar 2 reasons why a accounting could be opened:
 

1. a comptroller is unsure wherever to post an item and enters it to a accounting unfinished directions
   
2. there is a difference in a very balance and a accounting is opened with the number of the difference so the balance agrees (pending end up and correction of the errors inflicting the difference).

Characteristics / Feature of Promissory Note

1. The instrument must be in writing. It can't be verbal.

2. It must be signed by a maker who should be a definite and definite person. A rubber stamp signature or maybe a signature in pencil that is valid. an agent can even sign a note on behalf of the firm having the authority.

3. It should contain an unrestricted promise to reimburse a definite amount of cash solely. the number of cash must be sure and definite.

4. The promise should be expressed. It can’t be implied.

5. The note should to be paid on demand or at a set future date.

6. It must be owed to a specific person or to the ordered person. The receiver must be sure.

7. The note may be created by two or more persons who may be susceptible to pay the certain quantity jointly.

8. It should be sealed according to the Law of statute.

9. The medium of payment should be in cash.