Journal Entries in the books of consignor and consignee

In the books of consignor In the books of consignee

For goods are sent on consignment to consignee

Consignment A/c dr. *** No Entry

To Goods sent on consignment A/c. ***
For expenses incurred by consignor

Consignment A/c dr. *** No Entry

To Cash/bank A/c. ***
For advance or security against the goods sent, received from consignee

Cash/ bank A/c dr. *** Consignors A/c dr. ***

Bills receivables A/c dr. *** To Cash/bank A/c. ***
To Consignees A/c. *** To Bills payables A/c . ***
For maturity of B/R or discounted bill before the maturity date

Cash/bank A/c dr. *** No Entry

Consignment A/c dr. (discount amt.) ***
To B/R A/c .. ***
For Expenses incurred by consignee as per account sale

Consignment A/c dr. *** Consignors A/c dr. ***

To Consignees A/c. *** To Cash/bank A/c. ***
For Sale of goods by consignee as per account sale

Consignees A/c dr. *** Cash/bank A/c dr. ***

To Consignment A/c. *** Consignment Debtors A/c dr. ***
To Consignors A/c. ***
(Go through the journal entries I have sent in the other file)

For Commission payable to consignee

Consignment A/c dr. *** Consignor A/c dr. ***

To Consignees A/c. *** To Commission Income A/c. ***
For Consignment Stock

Consignment stock A/c dr. *** No Entry

To consignment A/c. ***

For profit or loss on consignment

Consignment A/c dr. (Profit) *** No Entry

To general profit & loss A/c. ***

General profit & loss A/c Dr. (Loss) *** No Entry

To Consignment A/c. ***

To close the goods sent on consignment A/c

Goods sent on consignment A/c dr. *** No Entry

To Trading A/c. ***
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. (Invoice price) *** No Entry

To Goods sent on consignment A/c. ***
For adjustment of the difference between Invoice price and cost price (profit).

Goods sent on consignment A/c dr. (difference) *** No Entry

To Consignment A/c. ***
For unsold goods (closing goods)

Consignment stock A/c dr. (Invoice price) *** No Entry

To consignment A/c. (Invoice price) ***

For adjustment of the difference between IP and CP in closing stock

Consignment A/c dr. (difference) *** No Entry

To stock reserve A/c. ***

In the books of Consignor

(place where goods sent on consignment) Consignment A/c
Particulars Amount Particulars Amount
To Goods sent on consignment A/c *** By Goods sent on consignment A/c ***
(difference- when goods are sent at Invoice)
To Cash/bank A/c ***
(consignor's Expense) By Insurance company A/c ***
(claim accepted by Insurance co.)
To Consignee's A/c *** By Gen. Profit & loss A/c ***
(Expenses incurred by consignee) (Abnormal loss)

To Bills receivable A/c *** By Consignee's A/c -Sales

(discount Exps. on bills) Cash ***
Credit ***
To Consignee's A/c - commission Purchased by consignee ***
General commission *** On Recommendation of consignor *** ***
Del credere commission *** ***

To Consignee's A/c - Bad debt ***

( when del credere commission is not paid
on credit sales)

To Stock reserve A/c *** By Consignment stock A/c ***

(if closing stock recorded at Invoice price) (invoice / (cost or Market value is less)

To Gen. profit & loss A/c *** By Gen. profit & loss A/c ***
(for profit) (for loss)
*** ***
 In the books of Consignor
Consignee's A/c
Particulars Amount Particulars Amount
To Consignment A/c - Sales By Bills Receivable A/c - Advance received ***
Cash *** By Cash/bank A/c - Advance received ***
Credit ***
On Recommendation of consignor *** By Consignment A/c - Expenses ***
Purchased by consignee *** *** (Expenses incurred by consignee)

By Consignment A/c - Commission ***

General commission ***
Del credere commission ***

By Consignment A/c - Bad debt ***

( when del credere commission is not paid on
credit sales)
*** ***

In the books of Consignor

Goods sent on Consignment A/c
Particulars Amount Particulars Amount
To Consignment A/c *** By Consignment A/c (Cost or Invoice) ***
(difference)-when goods sent at Invoice

To Trading A/c ***

*** ***

In the books of Consignee

Consignor's A/c
Particulars Amount Particulars Amount
To Bills payable A/c - Advance paid *** By Cash A/c - Cash Sales ***
To Cash/bank A/c - Advance paid *** By Consignment debtors A/c - credit sales ***
By Consignment debtors A/c ***
To Cash/bank A/c - Expenses *** (credit sales on recommendation and risk of consignor)
(Expenses incurred by consignee) By Purchase A/c - for personal use

To Commission Income 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)
*** ***