The document describes consignment accounts and the journal entries recorded in the books of the consignor and consignee. A consignor owns goods and sends them to a consignee to sell on their behalf. The consignee sells the goods and incurs various expenses. Profits and losses are shared between the consignor and consignee as per their agreement. The document outlines 24 journal entries recorded separately in the books of the consignor and consignee to account for the consignment transaction.
The document describes consignment accounts and the journal entries recorded in the books of the consignor and consignee. A consignor owns goods and sends them to a consignee to sell on their behalf. The consignee sells the goods and incurs various expenses. Profits and losses are shared between the consignor and consignee as per their agreement. The document outlines 24 journal entries recorded separately in the books of the consignor and consignee to account for the consignment transaction.
The document describes consignment accounts and the journal entries recorded in the books of the consignor and consignee. A consignor owns goods and sends them to a consignee to sell on their behalf. The consignee sells the goods and incurs various expenses. Profits and losses are shared between the consignor and consignee as per their agreement. The document outlines 24 journal entries recorded separately in the books of the consignor and consignee to account for the consignment transaction.
(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