When a consignment is received it is given a lot number and entered in this book in the name of the shipper, but without extending the amounts. If any expenses have been incurred, an account is opened immediately in the consignment ledger in the name of the shipper. =51. The Cash Book=. On the credit side of the cash book, under the general heading _consignment ledger_, are three columns, headed _net proceeds_, _expense_, and _commission_. The commission column is a memorandum column only, the total being posted, at the end of the month, to the credit of commission account in the general ledger. Net proceeds, expense, and commission on each consignment are posted as separate items to the debit of that particular consignment account. At the end of the month, the total of these three columns is posted to the debit of consignment ledger account in the general ledger. =52. Sales Book.= The sales book is provided with special columns for sales and consignment sales. The sales column represents sales of the merchants' own goods, the totals being posted at the end of the month to the credit of sales account in the general ledger and to the debit of the sales ledger account. The consignment sales are listed by lot number and posted to the credit of the consignment accounts. As the lot numbers run consecutively in the receiving book, this furnishes an index to the consignment accounts. The totals of the consignment sales columns are posted to the credit of consignment ledger account, and the consignment ledger column is posted to the debit of sales ledger account. =53. Consignment Ledger.= This ledger contains accounts with every consignment received. The accounts are _charged_ with expenses, net proceeds, and commissions from the cash book, and _credited_ with sales from the sales book. If a remittance is not sent with the Account Sales, the necessary entry is made in the journal, charging both consignment account and consignment ledger account and crediting the shipper as principal—or bills payable account when a note is sent. =54. Consignment Ledger Account.= This is a controlling account which receives its debits and credits from the same sources as do the consignment accounts. Except in the case of journal entries, totals only are posted at the end of the month. PURCHASE AND SALE OF OWN GOODS =55.= When the commission merchant is also a wholesaler, the purchases and sales are treated on the books exactly as they would be if he was not a commission merchant. The books and accounts required are the same as those of any other wholesale merchant. SAMPLE TRANSACTION =56.= The following transactions include the shipments used in the last model set, but treated from the standpoint of the commission merchant.