Consignment One Shot | Valuation of Closing Stock + Invoice Price + All Sums | CMA Inter Group 1

Consignment One Shot Revision for CMA Inter Group 1 — Paper 6 Financial Accounting. This video covers ALL concepts of Consignment from scratch — consignor and consignee, pro forma invoice, account sales, Consignment Account, valuation of closing stock, normal and abnormal loss, del credere commission, and goods sent at invoice price — with two fully solved important questions so you can revise the entire chapter in one sitting before your exam. 📚 What you'll learn in this One Shot: ✔ Meaning of Consignment — Consignor, Consignee and the Principal-Agent relationship ✔ Possession vs Ownership — what actually transfers when goods are consigned ✔ Consignment Outward vs Consignment Inward ✔ Pro Forma Invoice vs Invoice, and Account Sales vs Sales Account ✔ Accounts prepared in the Consignor's books vs the Consignee's books ✔ Format of the Consignment Account ✔ The "art of copying" method for Goods Sent on Consignment, Consignee Account and Abnormal Loss Account ✔ Valuation of closing stock — recurring vs non-recurring expenses ✔ Normal loss vs abnormal loss (Goods Lost in Transit / Goods Lost in Godown) ✔ Ordinary commission and Del Credere Commission — who bears bad debts ✔ Consignee's books — Consignor Account and Commission Income Account ✔ Goods Sent at Invoice Price — loading and reversal of loading ✔ What to do when the sale value is not given (sell at invoice price) ✔ Valuation when units are not given (treat cost as units) ✔ The biggest mistake with loading on abnormal loss and closing stock, and how to avoid it ✔ Two fully solved practical questions (one at cost, one at invoice price) 👨‍🏫 Taught by: Abhimanyyu Agarrwal 📖 Course: CMA Intermediate Group 1 📄 Paper: Paper 6 – Financial Accounting 🙋 Frequently Asked Questions: Q1. What is Consignment? A. Consignment is a business arrangement in which the consignor sends goods to the consignee, who receives and sells them on the consignor's behalf for a commission. The consignor remains the owner and bears the profit or loss. Q2. Is ownership transferred when goods are sent on consignment? A. No. Only possession is transferred. Ownership passes to the customer when the consignee sells the goods. Q3. What is a Pro Forma Invoice? A. A pro forma invoice is the document the consignor sends to the consignee with the goods. It looks like an invoice but is not one, and it does not make the consignee liable to pay. Q4. What is Account Sales? A. Account Sales is the statement the consignee sends to the consignor showing sales, expenses, commission, advances and the final amount remitted. It is not the same as a Sales Account. Q5. Which expenses are included in valuing closing stock? A. Only non-recurring expenses, such as the consignor's expenses and the consignee's expenses incurred up to bringing the goods to the godown (for example clearing charges and carriage). Recurring selling expenses such as godown rent and salesman salary are excluded. Q6. Who bears bad debts under Del Credere Commission? A. The consignee bears the bad debts, and they are adjusted against the del credere commission in the consignee's books. Q7. How do you treat goods sent at invoice price? A. Write opening stock, goods sent, abnormal loss and closing stock at invoice price, and immediately reverse their loading on the opposite side of the Consignment Account. ⏱ Timestamps: 0:00 Introduction & Basic Concepts 4:22 Pro Forma Invoice & Account Sales 7:54 Format of Consignment Account 12:40 Valuation of Closing Stock 16:29 Sum 1: Singhania Traders — Full Solution 36:56 Related Accounts (Goods Sent, Consignee, Abnormal Loss) 45:02 Consignee's Books 52:51 Goods Sent at Invoice Price — Concept 56:34 Sum 2: Kunal & Qureshi — Full Solution 1:24:54 Closing 🔔 Subscribe for more One Shot Revisions of CMA Inter Group 1 & Group 2 — Financial Accounting, Corporate Accounting & more, only on this channel! 📲 Follow for updates: 📚 Join Our CA/ CMA Foundation & Intermediate Classes 👉 Modes: Face-to-Face (Kolkata), Live Online, Google Drive, and Pendrive 📞 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩: / 🌐 𝐕𝐢𝐬𝐢𝐭: ‎🌐 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩 𝐂𝐡𝐚𝐧𝐧𝐞𝐥: 🌐 𝐓𝐞𝐥𝐞𝐠𝐫𝐚𝐦: 🌐 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦: Download the notes used in this video here: #CMAInter #Consignment #FinancialAccounting #ConsignmentAccounts #CMAInterGroup1 #CMAIntermediate #OneShotRevision #CMAInterPaper6 #ICMAI