Journal Entries in the books of Consignor and Consignee

When Del credere commission is When Del credere commission is When Del credere commission is When Del credere commission is notnotnotnot givengivengivengiven…..

In the books of Consignor In the books of consignee

For Credit sales

Consignment debtors A/c Dr. *** No Entry

To Consignment A/c…. ***

For Collection from debtors

Consignee’s A/c Dr. *** Cash/bank A/c Dr. ***

To Consignment debtors A/c… *** To Consignor’s A/c… ***

For Bad debt

Bad debt/Consignment A/c Dr. *** No Entry

To Consignment debtor’s A/c… ***

Alternative Entries when Del credere commission is not given……

For credit sales

Consignee’s A/c Dr. *** Consignment debtors A/c Dr ***

To Consignment A/c…… *** To Consignor’s A/c……. ***

For Bad debt and collection from debtors

Consignment A/c Dr. (Bad debt) *** Cash/bank A/c Dr. ***

To Consignee’s A/c……… *** Consignor’s A/c Dr. (Bad debt) ***

To Consignment debtors A/c… ***

When Del credere commiWhen Del credere commiWhen Del credere commiWhen Del credere commission is givenssion is givenssion is givenssion is given…..

In the books of Consignor In the books of consignee

For credit sales

Consignee’s A/c Dr. *** Consignment debtors A/c Dr. ***

To Consignment A/c... *** To Consignor’s A/c…….. ***

For Bad debt and Collection from debtors

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

Bad debt A/c Dr. ***

To Consignment debtors A/c… ***

For commission and del credere commission

Consignment A/c Dr. *** Consignor’s A/c Dr. ***

To Consignee’s A/c…. *** To Commission Income A/c…. ***

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….. ***

Commission Income A/C Dr. ***

To Profit & Loss A/c…. ***