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
