alleryClosing stock includes goods sent on consignment ₹15,000 (sold not yet). They should be:
AExcluded from closing stock
BDebited to Trading A/c
CTreated as sales receipt
DIncluded in closing stock
Answer & Solution
Correct answer: D. Included in closing stock
1. Goods on consignment with consignee still belong to the consignor until sold.
2. They form part of consignor's closing stock.
3. Sales are recognised only when consignee actually sells them.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.3 consignment treatment_
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