674 THE HOME, FARM AND BUSINESS CYCLOPAEDIA. 



Book and posted directly from this book to the credit of those accounts 

 on the Ledger. As soon as a consignment is " closed out," i. e., the goods 

 all sold, an Account-Sales must be made out and rendered to the consignor, 

 which Account-Sales is an exact copy of his account on the Consignment 

 Book. 



The person who ships the goods is called the consignor, and the person 

 to whom the goods are consigned or shipped, is called the consignee. 



The consignee often sells on time unless he has advice from the consignor 

 to the effect that he must sell for cash. If the consignee sells on time it 

 is understood that he (the consignee) takes all risks in collecting the ac- 

 count of the person to whom he sells. After the goods in a consignment 

 have all been sold and an Account-Sales made out, if there were any tii no- 

 sales made the Account- Sales is then averaged, the date found upon which 

 the net proceeds becomes due, and a note sent or draft accepted for the- 

 amount. 



The consignor often makes sight drafts on the consignee " in round' 

 amounts," on consignments not yet entirely sold out ; these drafts are paid 

 by the consignee, and of course charged to this account in the Ledger. 



The commission merchant often receives several consignments from the 

 same person. Although but one account is opened in the Ledger, a sep- 

 arate account must be opened for each consignment in the Consignment 

 Book, and each consignment has a different number ; yet each of these 

 Consignment Nos. are identified as belonging to the same person. As 

 these different consignments are closed out, the net proceeds of each are 

 carried to the same account in the Ledger. The reason for keeping each 

 consignment separate is, because the consignor wishes to know upon each 

 consignment how much is lost or gained. 



25O. CLOSING COMMISSION BOOKS AT THE END OF THE YEAR. Un- 

 like any other business, no Merchandise account being kept, the proceed- 

 ings for closing the books in the commission business differ only in this 

 one particular, viz.: no inventory of merchandise is taken, for the reason 

 that the goods in our store do not belong to us. However, an inventory 

 is made of the store and office fixtures, the insurance unexpired, etc., after 

 which a Loss & Gain account is opened, and all the accounts upon which we 

 lose or gain are closed and carried into this account the same as in any other 

 business. At the end of the year there are consignments which have not 

 yet been entirely sold out, and upon which there are, of course, gains to 

 us for commission, etc.; all these charges thus due to us for commission 

 on sales already made, insurance, storage, etc., may be, at the end of the 

 year, debited to the consignments and credited to the^different accounts 



