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Journal Entries For Consignment Accounts Del Credere Commission

The document outlines the journal entries in the books of a consignor and consignee under different scenarios. When del credere commission is not given, the consignor records credit sales to Consignment Debtors and collections to Consignee's account. The consignee records credit sales to Consignment account and bad debts against Consignee's. When del credere commission is given, the consignor records credit sales to Consignee and bad debts to Bad Debt account, while the consignee records commission income from Consignment. The consignee adjusts bad debts against commission and transfers any remaining balance to the Profit & Loss account.

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4K views1 page

Journal Entries For Consignment Accounts Del Credere Commission

The document outlines the journal entries in the books of a consignor and consignee under different scenarios. When del credere commission is not given, the consignor records credit sales to Consignment Debtors and collections to Consignee's account. The consignee records credit sales to Consignment account and bad debts against Consignee's. When del credere commission is given, the consignor records credit sales to Consignee and bad debts to Bad Debt account, while the consignee records commission income from Consignment. The consignee adjusts bad debts against commission and transfers any remaining balance to the Profit & Loss account.

Uploaded by

Anonymous duzV27Mx3
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Journal Entries in the books of Consignor and Consignee

When Del credere commission is not given..


In the books of Consignor
For Credit sales Consignment debtors A/c Dr. To Consignment A/c. For Collection from debtors Consignees A/c Dr. To Consignment debtors A/c For Bad debt Bad debt/Consignment A/c Dr. To Consignment debtors A/c *** *** No Entry *** *** Cash/bank A/c Dr. To Consignors A/c *** *** *** *** No Entry

In the books of consignee

Alternative Entries when Del credere commission is not given


For credit sales Consignees A/c Dr. To Consignment A/c For Bad debt and collection from debtors Consignment A/c Dr. (Bad debt) To Consignees A/c *** *** Cash/bank A/c Dr. Consignors A/c Dr. (Bad debt) To Consignment debtors A/c *** *** *** *** *** Consignment debtors A/c Dr To Consignors A/c. *** ***

When Del credere commission commission is given..


In the books of Consignor
For credit sales Consignees A/c Dr. To Consignment A/c... For Bad debt and Collection from debtors No Entry Cash/bank A/c Dr. Bad debt A/c Dr. To Consignment debtors A/c *** *** *** *** *** Consignment debtors A/c Dr. To Consignors A/c.. *** ***

In the books of consignee

For commission and del credere commission Consignment A/c Dr. To Consignees A/c. *** *** Consignors A/c Dr. To Commission Income A/c. *** ***

Adjusting B/D against Commission, and remaining balance of Commission transferred to P&L A/c No Entry Commission Income A/c Dr. To Bad debt A/c.. Commission Income A/C Dr. To Profit & Loss A/c. *** *** *** ***

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