CONSIGNMENT ACCOUNTS

CONSIGNOR →→→→CONSIGNMENT SALE ←←←← CONSIGNEE

(OWNER OF THE GOODS ) AT COST /AT INVOICE PRICE (SELLER OF THE GOODS)
↓ 2000 UNIT ↓
WORKS FOR PROFIT 1800 SOLD WORKS FOR COMMISSION
CLOSING STOCK 200 UNIT UNSOLD
Expenses incurred by Consignor Expenses incurred by Consignee
(Non Recurring) (Non Recurring)
 Carriage CP 25,000 PER UNIT  Carriage up to Godown
 Freight SP 35,000 PER UNIT  Freight up to Godown
 Transit Insurance  Custom Duty
 Packing  Octroi
 Loading  Clearing charges
 Dock dues
 Unloading Charges
Following are Recurring Expenses not
included while valuing Closing Stock
 Godown Rent
 Warehouse Charges
 Discount
 Bad debts
 Insurance of the goods in the
Godown
 Office & Administration
Expenses
 Selling & Distribution Expenses

 NORMAL COMMISSION
 DEL CREDERE COMMISSION
 PROFORMA INVOICE
 ACCOUNT SALES
 JOURNAL ENTRIES

NO JOURNAL in the Books of CONSIGNOR JOURNAL in the Books of CONSIGNEE

Particulars Dr. Cr. Particulars Dr. Cr.
₹ ₹ ₹ ₹
1 Goods consigned No Entry
Consignment A/c Dr. 12
To Goods sent on Consignment A/c 12
2 Consignor’s Expenses No Entry
Consignment A/c Dr.
To Cash / Bank A/c
3 Advance from Consignee (Cash)
Cash / Bank A/c Dr. Consignor’s A/c Dr.
To Consignee’s A/c To Cash / Bank A/c
4 Advance from Consignee (Bills receivable )
Bills Receivable A/c Dr. Consignor’s A/c Dr.
To Consignee’s A/c To Bills Payable A/c
5 Cash Sales by Consignee
Consignee A/c Dr. Cash /Bank A/c Dr.
To Consignment A/c To Consignor’s A/c
6 Credit Sales by Consignee
Consignee A/c Dr. Consignment Debtors A/c Dr.
To Consignment A/c To Consignor’s A/c
7 Goods Returned by Consignee No Entry
Goods Sent on Consignment A/c Dr.
To Consignment A/c
8 Expns by Consignee for Returning Goods
Consignment A/c Dr. Consignor’s A/c Dr.
To Consignee A/c To Cash/ Bank A/c
9 Goods Taken by Consignee
Consignee A/c Dr. Purchase A/c Dr.
To Consignment A/c To Consignor’s A/c
10 Collection from debtors by Consignee Cash / Bank A/c Dr.
No Entry To Consignment Debtors A/c
11 Consignee’s Expenses
Consignment A/c Dr. Consignor’s A/c Dr.
To Consignee’s A/c To Cash / Bank A/c
12 Consignee’s Commission
Consignment A/c Dr. Consignor’s A/c Dr.
To Consignee’s A/c To Commission A/c
13 Consignee’s Del Credere Commission
Consignment A/c Dr. Consignor’s A/c Dr.
To Consignee’s A/c To Del Credere Commission A/c
14 Bad Debts (No Del Credere)
Consignment A/c Dr. Consignor A/c Dr.
To Consignee A/c To Consignment Debtors A/c
15 Bad Debts (Del Credere) Del Credere Commission A/c Dr.
 No Entry To Consignment Debtors A/c
16 Consignee’s Remittance (Cash)
Cash / Bank A/c Dr. Consignor’s A/c Dr.
To Consignee’s A/c To Cash / Bank A/c
17 Consignee’s Remittance (BR)
Bills Receivable A/c Dr. Consignor’s A/c Dr.
To Consignee’s A/c To Bills Payable A/c
18 Bills Receivable Discounted
Cash/Bank Dr.
Consignment A/c (Discount) Dr. No Entry
To Bills Receivable A/c
19 Closing Stock
Stock on Consignment A/c Dr. No Entry
To Consignment A/c
20 Profit on Consignment
Consignment A/c Dr. No Entry
To Profit & Loss A/c
21 Loss on Consignment
Profit & Loss A/c Dr. No Entry
To Consignment A/c
22 Transfer Goods sent to Trading A/c
Goods sent on consignment A/c Dr. No Entry
To Trading A/c
23 Loading on Goods sent
Goods on Consignment A/c Dr. No Entry
To Consignment A/c
24 Loading on Closing Stock
Consignment A/c Dr. No Entry
To Stock Reserve