Saturday 25th Nov, 2023

Financial Accounting Paper III (Objective) – 10.00 am 11.20 am
Financial Accounting Paper II (Theory & Practice) – 11.20am – 1.50pm













(i) Consignee:

A consignee is a person or business entity to whom goods are shipped or consigned by the consignor. The consignee is typically responsible for receiving the goods, selling them on behalf of the consignor, and remitting the proceeds, minus any agreed-upon commissions or fees, back to the consignor. The consignee does not take ownership of the goods but acts as an agent for the consignor.


(ii) Consignor:

The consignor is the party (individual or business) that sends or consigns goods to another party, known as the consignee. The consignor retains ownership of the goods until they are sold by the consignee. The consignor may receive payment for the sold goods or the unsold goods may be returned, depending on the terms of the consignment agreement.


(iii) Consignment Outwards:

Consignment outwards refers to the process by which a business sends or dispatches goods to another party for the purpose of selling those goods on behalf of the sender. The sender, known as the consignor, retains ownership of the goods until they are sold. Consignment outwards is a common practice in retail and distribution where manufacturers or wholesalers consign goods to retailers.


(iv) Del Credere Commission:

Del credere is an Italian term meaning “of belief” or “of credit.” In business, a del credere commission is a type of commission paid by a seller to an agent (often a consignee) for taking on additional credit risk when selling goods on credit to customers. If the customer defaults on payment, the del credere agent (consignee) is responsible for making payment to the seller. The del credere commission compensates the consignee for this added risk.


(v) Account Sales:

Account sales refer to a document or statement provided by a consignee to the consignor detailing the sales of consigned goods. It includes information such as the quantity and description of goods sold, the selling prices, any expenses or commissions deducted, and the net amount due to the consignor. Account sales serve as a record of transactions and are used for financial reporting and reconciliation between the consignor and consignee.




(i) Invoice

(ii) Receipt

(iii) Purchase Order

(iv) Sales Order

(v) Credit Memo

(vi) Debit Note

(vii) Voucher

(viii) Bank Statement

(ix) Delivery Note

(x) Bill of Lading


A control account in financial accounting is a general ledger account that summarizes the total balances or transactions of a subsidiary ledger. It serves as an overview or summary of individual accounts within a specific category, allowing for a more organized and streamlined recording and monitoring of financial transactions.




(i) Non-profit organizations are driven by a specific mission or purpose, often focused on benefiting society or a particular cause.


(ii) Non-profits are restricted from distributing profits or surpluses to individuals or shareholders.


(iii) Non-profits typically rely on donations, grants, or volunteer efforts to support their operations and achieve their goals.


(iv) Non-profits are accountable to their stakeholders, including donors, volunteers, and the public.


(v) Non-profits are often focused on achieving social impact and positive outcomes rather than financial returns.


(vi) Non-profits deliver programs and services that align with their mission.


(vii) Non-profits often qualify for tax-exempt status, meaning they are not required to pay income taxes on their earnings.




(i) The control account summarizes the details from the subsidiary ledger.

(ii) Recording financial transactions is simplified through the use of a control account.

(iii) During the reconciliation process, the control account aids in ensuring accuracy.

(iv) The control account streamlines the process of reporting financial information.

(v) The control account provides a comprehensive overview of a specific category’s financial status.

(vi) It is used to reduce clutter in the general ledger by summarizing information from the subsidiary ledger.

(vii) Discrepancies in financial records can be highlighted and addressed through the control account.

(viii) The control account assists in the auditing process by providing a clear summary of transactions.

(ix) The control account tracks the financial position of a specific category or account.

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