Learning Materials For Accounting, Management , Finance And Economics.

Wednesday, October 5, 2011

Journal Entries In The Books Of Consignee



Consignment is not a sale. Hence, the consignee does not treat the consignor as his creditor. The consignee does not make any entry for the goods consigned by the consignor and received by consignee, because the goods do not belong him. Following is the procedure for recording transactions in the books of consignee.



1. For remitting advance

Consignor's A/c...................Dr.
To cash/bank/bills payable A/c

2. For bills met on due date

Bills payable A/C ................Dr.
To Bank A/c

3. For incurring expenses

Consignor's A/C.....................Dr.
To Cash/bank A/c

4. For making cash sale

Bank/Cash A/C................Dr.
To consignor's A/c

5. For credit sale

Consignment debtor's A/C............Dr.
To consignor's A/c

6. For charging commission

Consignor's A/c ...........Dr.
To commission A/c

7. For collection of debt

Bank A/C ..................Dr.
To consignment debtor's A/c

8. For final settlement of account with consignor

Consignor's A/C.............Dr.
To cash or bank A/c