Journal Entries for consignment accounts Del Credere Commission

Journal Entries in the books of Consignor and Consignee

When Del credere commission is not given….. given….. In the books of Consignor

In the books of consignee

For Credit sales Consignment debtors A/c Dr. To Consignment A/c….

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No Entry

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For Collection from debtors Consignee’s A/c Dr. To Consignment debtors A/c…

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Cash/bank A/c Dr. To Consignor’s A/c…

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For Bad debt  Bad debt/Consignment A/c Dr. To Consignment debtor’s A/c…

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No Entry

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Alternative Entries when Del credere c ommission is not given…… For credit sales Consignee’s A/c Dr. To Consignment A/c……

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Consignment debtors A/c Dr To Consignor’s A/c…….

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Cash/bank A/c Dr. Consignor’s A/c Dr. (Bad debt) To Consignment debtors A/c…

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For Bad debt and collection from debtors Consignment A/c Dr. (Bad debt) To Consignee’s A/c………

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When Del credere commi commission ssion is given given….. ….. In the books of Consignor

In the books of consignee

For credit sales Consignee’s A/c Dr. To Consignment A/c...

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Consignment debtors A/c Dr. To Consignor’s A/c……..

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Cash/bank A/c Dr. Bad debt A/c Dr. To Consignment debtors A/c…

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Consignor’s A/c Dr. To Commission Income A/c….

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For Bad debt and Collection from debtors No Entry

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For commission and del credere commission Consignment A/c Dr. To Consignee’s A/c….

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 Adjusting B/D against Commission, and remaining balance of  Commission transferred to P&L A/c No Entry

Commission Income A/c Dr. To Bad debt A/c…..

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Commission Income A/C Dr. To Profit & Loss A/c….

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