How the problems are made
Each problem is an invented consignment or joint venture with whole-rupee figures. Level 1 values the unsold stock and any loss in transit. Level 2 is the Consignment Account and the consignee's account in the consignor's books, with commission, del credere commission, bad debts and advances. Level 3 sends the goods at invoice price. Level 4 is a joint venture kept in each venturer's own books with a Memorandum Joint Venture Account, and level 5 a joint venture with separate books and a joint bank account.
Each line of an account has a Dr cell and a Cr cell: type the amount on its side and leave the other empty. Some lines do not belong in that account and stay empty on both sides. Check marks every amount you typed and counts the ones still to fill, a slip that breaks a textbook rule (recurring expenses in the stock, say) gets a hint that names the rule, and a total or balance that is right for your own wrong figures is marked as following your figures.
The layout
Amounts are in rupees with Indian digit grouping (1,00,000), and the key writes each account as Indian B.Com textbooks do: "To" on the debit side, "By" on the credit side, totals ruled off and the balance brought down. The year runs from 1 April 2026 to 31 March 2027. Invoice-price problems have no abnormal loss; abnormal loss is practised at cost in levels 1 and 2. Over-riding commission, branch, royalty and hire purchase accounts are not covered.
An example from set KMR4P7
Iyer Enterprises sent 1,000 tonnes of coal costing ₹5,500 a tonne to Banerjee & Sons and paid ₹2,51,360 for freight and insurance. A normal loss left 960 tonnes, so each tonne received cost ₹57,51,360 ÷ 960 = ₹5,991. The consignee's unloading and cartage of ₹38,400 adds ₹38,400 ÷ 960 = ₹40 a tonne; its godown rent and advertisement stay out of the stock. The 180 tonnes unsold are worth 180 × (₹5,991 + ₹40) = ₹10,85,580, and the Consignment Account shows a profit of ₹6,31,850. The ₹20,15,000 advance goes only in Banerjee & Sons' account, which closes with a draft of ₹32,82,630. Open set KMR4P7
Questions
How is unsold stock on consignment valued?
At cost, plus its share of the consignor's expenses (freight, insurance in transit) and of the consignee's expenses up to the godown (unloading, cartage, clearing, octroi). Godown rent, insurance in the godown and selling expenses are left out; ICAI's Board of Studies notes say to leave them out even if the question gives them.
How is normal loss treated in a consignment account?
It gets no entry of its own. The total cost of the goods and the consignor's expenses is spread over the units that arrive, so each unit received costs more. For 1,000 tonnes costing ₹57,51,360 with freight and insurance, and 40 tonnes lost normally, each of the 960 tonnes received costs ₹57,51,360 ÷ 960 = ₹5,991.
How is abnormal loss valued in consignment?
At the cost of the lost units plus the consignor's expenses on them. The consignee's expenses are left out because the goods never reached the consignee. The Consignment Account is credited with the whole loss: the insurance claim on one line and the part not covered, charged to Profit and Loss, on another.
What is del credere commission?
Extra commission paid to the consignee for bearing the bad debts on credit sales. It is worked out on total sales, cash and credit, unless the question says otherwise. With del credere commission a bad debt is the consignee's loss and does not appear in the consignor's books; with ordinary commission only, the consignor bears it.
How do you record goods sent on consignment at invoice price?
Debit the Consignment Account with the goods at invoice price and credit it with the loading (invoice price less cost). Value the unsold stock at invoice price plus its expenses, then debit the loading in that stock to a Stock Reserve. The profit comes out the same as at cost.
What is a Memorandum Joint Venture Account?
When each venturer records the venture in their own books, each opens a Joint Venture with (the other venturer) Account for their own transactions. The Memorandum Joint Venture Account brings both sets of figures together only to find the profit; it is not part of either venturer's double entry.
How are joint venture accounts kept in separate books?
The venturers open a joint bank account and keep a Joint Venture Account, the Joint Bank Account and an account for each venturer. The profit is shared in the agreed ratio, or equally when none is agreed, and the bank is closed by paying each venturer the balance of their account. Both methods give the same profit.
Sources, checked 29 October 2026: ICAI Board of Studies, Foundation Paper 1, Chapter 6 Unit 3 Consignment class notes (2021) and the Foundation Module 1 syllabus and contents; Pondicherry University, B.Com Principles of Financial Accounting, lessons 5.1 Consignment and 5.2 Joint Venture; the B.Com syllabi of Sardar Patel University, Gujarat, Vaze College, Mumbai and Kamaraj College; and the ACT212 lecture notes of Thomas Adewumi University, Nigeria (PDFs).