EPFO 2017 PYQ with Answer — The abnormal loss on consignment is credited to

2017 · Q64

The abnormal loss on consignment is credited to

General Accounting Principles, Auditing and InsuranceRecording transactions

AProfit and Loss Account
BConsignee's Account
CConsignment Account
DIncome and Expenditure Account

Explanation

Abnormal loss on consignment (e.g., by accident or theft) is credited to the Consignment Account to remove the lost units from consignment stock, with the corresponding debit to the Profit and Loss Account. It is not credited to the consignee's account or the P&L account. Hence C.