Explanation:

Stock reserve is not credited  to consignment account in the books of the consignment.The transactions relating to consignment are recorded in such a way that the profit or loss of each consignment can be ascertained separately. It requires the preparation of a special account known as consignment account.

 A consignment account is a nominal account prepared to find out the profit or loss of a consignment. The account is debited with the cost of goods sent, expenses incurred by the consignor and consignee, and the commission due to the consignee. But the account is credited with the amount of sales affected and also with closing stock, if any. The balance of this account is either profit or loss