FULL-FLEGDED FULL-FLEGDED QUESTION OF QUESTION OF

CONSIGNMENTCONSIGNMENT

BY-AKASH SOLANKIBY-AKASH SOLANKI

INTRODUCTIONINTRODUCTIONCONSIGNMENTCONSIGNMENTCONSIGNORCONSIGNORCONSIGNEECONSIGNEE

CONSIGNMENTCONSIGNMENTCONSIGNMENTCONSIGNMENT is an act of consigning, which in turn is the act of giving over to another person or agent's charge, custody or care any material or goods, but retaining legal ownership until the material are sold.

ConsigneeConsigneeIn a contract of carriage,the consignee is the entity who is responsible for the receipt of a shipment. Generally, but not always, the consignee is the same as the receiver.

ConsignorConsignorThe consignor, in a contract of carriage, is the person sending a shipment to be delivered whether by land, sea or air. If sender sends a widget to receiver via a delivery service, Sender is the consignor and Receiver is the consignee.

Question-Question-Wills of London, whose financial year ends on 31st December, consigned goods to Adams, his agent in Canada. All transactions were started and completed in 2008. January 16: wills consigned goods

costing $500 to Adams.February 28: wills paid carriage, $50.

Adams, the consignee, sends an account sales on 31 July when all the goods have been sold. It shows:

Sales amounted to $750.Adams expenses were: imports duty,$30.

Distribution expense, $30.Commission had been agreed at 6 percent of

sales. This amounted to $41.Adams paid balances owing, $650.

CONSIGNEMENT ACCOUNTCONSIGNEMENT ACCOUNT

GOODS SENT ON CONSIGNMENT

ADAMS(CONSIGNEE)ADAMS(CONSIGNEE)

ACCOUNT SALESADAMS,

OTTAWA,CANADA,

31st JULY 2008TO WILLS LONDON.

Sales of goods received on consignment 750Less: charges: Import duty 25 Distribution costs 30 Commission 45 100 Bank draft enclosed 650650

WILLSWILLS(CONSIGNOR)(CONSIGNOR)