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Journal Entries in the books of consignor and consignee

In the books of consignor
For goods are sent on consignment to consignee

In the books of consignee

Consignment A/c dr. To Goods sent on consignment A/c….
For expenses incurred by consignor

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No Entry

Consignment A/c dr. To Cash/bank A/c….

*** ***

No Entry

For advance or security against the goods sent, received from consignee

Cash/ bank A/c dr. Bills receivables A/c dr. To Consignee’s A/c….

*** *** ***

Consignor’s A/c dr. To Cash/bank A/c…. To Bills payables A/c ….

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For maturity of B/R or discounted bill before the maturity date

Cash/bank A/c dr. Consignment A/c dr. (discount amt.) To B/R A/c …..

*** *** ***

No Entry

For Expenses incurred by consignee as per account sale

Consignment A/c dr. To Consignee’s A/c….
For Sale of goods by consignee as per account sale

*** ***

Consignor’s A/c dr. To Cash/bank A/c….

*** ***

Consignee’s A/c dr. To Consignment A/c….

*** ***

Cash/bank A/c dr. Consignment Debtors A/c dr. To Consignor’s A/c….
(Go through the journal entries I have sent in the other file)

*** *** ***

For Commission payable to consignee Consignment A/c dr. To Consignee’s A/c….
For Consignment Stock Consignment stock A/c dr. To consignment A/c…. For profit or loss on consignment *** ***

*** ***

Consignor’ A/c dr. To Commission Income A/c….

*** ***

No Entry

Consignment A/c dr. (Profit) To general profit & loss A/c…. General profit & loss A/c Dr. (Loss) To Consignment A/c…. To close the goods sent on consignment A/c Goods sent on consignment A/c dr. To Trading A/c….

*** *** *** ***

No Entry No Entry

*** ***

No Entry

Goods sent on consignment A/c dr.when goods are sent at Invoice) To Cash/bank A/c *** (consignor's Expense) By Insurance company A/c (claim accepted by Insurance co. *** *** No Entry In the books of Consignor (place where goods sent on consignment) Consignment A/c Particulars Amount Particulars To Goods sent on consignment A/c *** By Goods sent on consignment A/c (difference. (Invoice price) To Goods sent on consignment A/c….commission General commission *** Del credere commission *** To Consignee's A/c .) To Consignee's A/c *** By Gen.Journal Entries in the books of consignor and consignee When goods are sent at an Proforma Invoice price In the books of consignor For goods are sent on consignment at an Invoice price Consignment A/c dr. Profit & loss A/c (Expenses incurred by consignee) (Abnormal loss) To Bills receivable A/c (discount Exps. profit & loss A/c (for profit) *** By Consignment stock A/c (invoice / (cost or Market value is less) By Gen.Bad debt ( when del credere commission is not paid on credit sales) To Stock reserve A/c (if closing stock recorded at Invoice price) To Gen. (difference) *** To Consignment A/c…. (Invoice price) To consignment A/c…. *** *** No Entry For adjustment of the difference between Invoice price and cost price (profit). on bills) To Consignee's A/c . (difference) To stock reserve A/c…. profit & loss A/c (for loss) *** By Consignee's A/c -Sales Cash Credit Purchased by consignee On Recommendation of consignor Amount *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** . For unsold goods (closing goods) No Entry *** Consignment stock A/c dr. (Invoice price) *** *** No Entry For adjustment of the difference between IP and CP in closing stock Consignment A/c dr.

for personal use Amount *** *** *** To Commission Income A/c .Particulars To Consignment A/c .Sales Cash Credit On Recommendation of consignor Purchased by consignee In the books of Consignor Consignee's A/c Amount Particulars By Bills Receivable A/c .Advance paid To Cash/bank A/c .Commission General commission *** Del credere commission *** By Consignment debtors A/c .Bad debt ( when del credere commission is not paid on credit sales) *** *** *** *** .credit sales By Consignment debtors A/c *** (credit sales on recommendation and risk of consignor) By Purchase A/c .Expenses *** *** (Expenses incurred by consignee) By Consignment A/c .Bad debt ( when del credere commission is not paid on credit sales) *** In the books of Consignor Amount *** *** *** *** *** *** Goods sent on Consignment A/c Particulars To Consignment A/c (difference)-when goods sent at Invoice To Trading A/c Amount Particulars *** By Consignment A/c (Cost or Invoice) Amount *** *** *** *** Particulars To Bills payable A/c .Cash Sales *** By Consignment debtors A/c .Advance paid To Cash/bank A/c .Expenses (Expenses incurred by consignee) In the books of Consignee Consignor's A/c Amount Particulars *** By Cash A/c .Advance received *** By Cash/bank A/c .Commission General commission *** Del credere commission *** By Consignment A/c .Advance received *** *** By Consignment A/c .