Stock held by Consignment Agents

[JOHN SHANNEL]

We transfer goods on F Form to our Consignment Agents. Should we show the stock in Company's Closing Stock.

 

John Shannel

[Vivek anandhan]

Yes, You must show in closing stock.   When sales transacation not done it should be considered as a stock.

[Guest]


Mr. John Shannel whenever you sale goods against F Form, you cann't show in stock in your books because it's a kind of sale so your consignee againt show in stock in his books

[Guest]

We you are dispatch material to consignment againt against f form it mean these are your goods still againt does not sale of goods so it must be reflect in your books as closing stock

AI Summary

Treatment of consigned stock: goods sent on F Form remain company closing stock until sold by the consignee. Goods dispatched to consignment agents on F Form are treated as the consignor's assets until sold by the consignee and therefore should be included in the consignor's closing stock; a contrary view treats such dispatches as sales at dispatch and excludes them from the consignor's closing stock, but the operative practical rule stated is to retain consigned goods in the consignor's books until sale.