The Theory of Accounts

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BROWN (Consignment).
To Cash, $1000. 00 6700. 00 By Mdse. , ' ' Balance, a/c sale $5000. 00 2700. 00 $7700. 00 $7700. 00 J. BROWN, CONSIGNMENT, a/c SALES.
To Mdse. , " Freight. " Expense, " Commission 11 Balance $5000. 00 -100. 00 300. 00 900. 00 2700. 00 By Sales, $9000. 00 $9000. 00 $9000. 00 175 CASH BOOK. 9 DR.
To Sales, $9000. 00 By J. Brown, " Freight, ' ' Commission, " Expense, CR.
$1000. 00 . 6700. 00 100. 00 900. 00 300. 00 $9000. 00 $9000. 00 J. JONES (personal a/c).
To cash, $900. 00
... By Commission, $900. 00 By a consignment or shipment is meant the transfer of the custody (but not the title) of merchandise by one party called the consignor, to another called the consignee. The consignor allows commission on sales and receives cash for proceeds less expenses incurred in the transac- tions, commission, &c. , so set forth in the " account sales " rendered by the consignee when the merchandise has been disposed of.
214. Examination of the books of a plumbers' supply house shows that all outgoing bills are press copied and posted individually to Customers' accounts, the monthly aggregate of sales being credited to Merchandise account.


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