Books of Consignor

As the goods sent on consignment by the cosigner are not his sales, he must not record consignment as sales and the consignee must not record them as purchases. The cosigner should not take up any profit on the transaction until the goods have been actually sold by the consignee. Since the goods still belong to the consignor, any unsold goods in the hands of the consignee at the end of the trading period should be included in the consignor’s stock.