Consignment Journal Entries and Accounts Formats

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. To Goods sent on consignment A/c….

***

No Entry ***

For expenses incurred by consignor

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….

*** ***

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

***

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

*** ***

***

For Sale of goods by consignee as per account sale

Consignee’s A/c dr. To Consignment 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….

*** ***

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

For Consignment Stock Consignment stock A/c dr. To consignment A/c….

No Entry

*** ***

For profit or loss on consignment

Consignment A/c dr. (Profit) To general profit & loss A/c….

***

General profit & loss A/c Dr. (Loss) To Consignment A/c….

***

No Entry *** No Entry ***

To close the goods sent on consignment A/c Goods sent on consignment A/c dr. To Trading A/c….

***

No Entry ***

*** ***

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) To Goods sent on consignment A/c….

***

No Entry ***

For adjustment of the difference between Invoice price and cost price (profit).

Goods sent on consignment A/c dr. (difference) *** To Consignment A/c….

No Entry ***

For unsold goods (closing goods)

Consignment stock A/c dr. (Invoice price) To consignment A/c…. (Invoice price)

***

No Entry ***

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

Consignment A/c dr. (difference) To stock reserve A/c….

***

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- 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 (discount Exps. on bills)

***

To Consignee's A/c - commission General commission *** Del credere commission ***

***

To Consignee's A/c - Bad debt

***

By Consignee's A/c -Sales Cash Credit Purchased by consignee On Recommendation of consignor

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

Amount ***

*** ***

***

( when del credere commission is not paid on credit sales) To Stock reserve A/c (if closing stock recorded at Invoice price)

***

By Consignment stock A/c (invoice / (cost or Market value is less)

***

To Gen. profit & loss A/c (for profit)

***

By Gen. profit & loss A/c (for loss)

***

***

***

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 received *** By Cash/bank A/c - Advance received *** *** By Consignment A/c - Expenses *** *** (Expenses incurred by consignee)

Amount *** *** ***

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 To Consignment A/c (difference)-when goods sent at Invoice

Amount Particulars *** By Consignment A/c (Cost or Invoice)

To Trading A/c

Particulars To Bills payable A/c - Advance paid To Cash/bank 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 - Cash Sales *** By Consignment debtors A/c - credit sales By Consignment debtors A/c *** (credit sales on recommendation and risk of consignor) 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)

Amount ***

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Amount *** *** ***

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