Journal Entries — CONSIGNMENT ACCOUNT

 

Journal Entries – (IN THE BOOKS OF CONSIGNOR)

 

1   For goods sent on consignment to consignee

Consignment A/c Dr.

To Goods Sent on Consignment Account

2  For expenses incurred by consignor

Consignment A/c Dr.

To Cash / Bank A/c

3  When a bill is drawn by the Consignor on Consignee and when Consignee accepts the bill

Bills Receivable A/c Dr.

To Consignee A/c

4 When the Consignor discounted the bill with his banker

Bank A/c Dr.

Discount A/c Dr.

To Bills Receivable A/c

5  For the expenses incurred by Consignee

Consignment A/c Dr.

To Consignee A/c

6  For Commission payable to Consignee

Consignment A/c Dr.

To Consignee A/c

7 For Sales effected by the Consignee

Consignee A/c Dr.

To Consignment A.c

8 In the Consignment A/c, if the credit side is greater (Profit)

Consignment A/c Dr.

To Profit and Loss A/c

 

9 In the Consignment A/c, if the debit side is greater (Loss)

Profit and Loss A.c Dr.

To Consignment A.c

10 In Consignee A/c, if the credit side is greater

Consignee A/c Dr.

To Cash / Bank A/c

11 In Consignee A/c, if the debit side is greater

Cash / Bank A/c Dr.

To Consignee

12 To close the Goods Sent on Consignment A/c

Goods Sent on Consignment A/c Dr.

To Trading Account

 

 

CONSIGNMENT ACCOUNT

Journal Entries – (IN THE BOOKS OF CONSIGNEE)

 

 1 For Bills Payable accepted

Consignor A/c Dr.

To Bills Payable A/c

2 For Sales effected on behalf of Consignor – Cash Sales

Cash / Bank A/c Dr.

To Consignor A/c

3 For Sales effected on behalf of Consignor – Credit Sales

Debtors A/c Dr.

To Consignor A/c

4 For expenses incurred on behalf of Consignor – if paid

Consignor A/c Dr.

To Cash / Bank A/c

5 For expenses incurred on behalf of Consignor – if payable

Consignor A/c Dr.

To Creditors A/c

6 For commission receivable

Consignor A/c Dr.

To Commission A/c

(and)

Commission A/c Dr.

Profit and Loss A/c

7 For Collections made from Debtors

Cash / Bank A/c Dr.

Debtors A/c

8 When Bad debts occur – if delcredere commission is paid

Bad debts A/c Dr.

To Debtors A/c

P & L A/c (or) Commission A/c Dr.

To Bad Debts A/c

9 When Bad debts occur – if delcredere commission is not paid

Consignor A/c Dr.

To Debtors A/c

10 For final settlement to Consignor -

Consignor A/c Dr.

To Cash / Bank A/c

(or)

Cash / Bank A/c Dr.

To Consignor A/c

 

 

 

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