176 FARM ACCOUNTING 



possession of the goods, but not the title, is transferred 

 to the consignee, who is the party receiving the goods for 

 sale. The consignee is sometimes called the factor. 



In recording consignments in the books of account no 

 debits and credits are expressed in the books of the con- 

 signor at the time of sending the goods. He makes a mem- 

 orandum in a notebook or in the back of the journal, in- 

 dicating the quantities and nature of the products or live- 

 stock sent, to whom sent and any other facts concerning 

 the terms of sale and so on. Any freight paid or other 

 expense incurred in sending them is charged to the prod- 

 uce or livestock account under consideration. 



\Vhea the consignee has sold the goods he usually re- 

 mits in the form of cash or note. At such a time, when 

 the cash or note is received, the debits and credits of the 

 consignment are expressed. Cash account or Notes !' 

 ( ivable is debited and the proper produce or livestock ac- 

 count credited. This credit to the produce account is for 

 the net amount after the consignee's commission and ex- 

 penses have been deducted, as shown by the "Account 

 Sales, " the statement accompany inr his remittance. 



There are several methods of handling consignments, of 

 which the one described is the simplest to operate but is 

 not the most theoretically correct one. 



The records from the viewpoint of the consignee do not 

 interest the farmer, hence are not presented hnre. 



Auction Sales. No account with auction sales is neces- 

 sary. The sale of each article is recorded as a credit to the 

 property account affected. This does not mean that a sep- 

 arate entry is made for each article sold. Some items can 

 be grouped in a single entry. 



For example, the sale list kept by the clerk of the sale 

 forms the basis for the entries. If one cultivator, two 

 wagons, one hay rake and one walking plow are sold for 

 $110 cash, according to the clerk's record the entry is: 



