Why is abnormal loss credited to consignment a/c?

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62 Points Posted on 30 August 2018
If consignment a/c is an nominal a/c then shouldn't losses be debited? Pls help.
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On 30 August 2018 at 13:57 Report
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Because, consignment account is kind of trading account. Effect of abnormal loss is not reflected in it. That's why we reverse its effect by crediting here and debiting such account in profit and loss account.
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On 30 August 2018 at 14:15
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62 Points Posted on 30 August 2018
Oh i see..thank you.
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On 30 August 2018 at 14:29
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you're welcome .
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On 30 August 2018 at 19:24
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Student CMA
22 Points Posted on 07 November 2021

But when consignment account is being credit, won't it will increase the profit of consignment business?

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On 07 November 2021 at 20:29

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