Journal Entries in the books of consignor and consignee

In the books of consignor

For goods are sent on consignment to consignee

In the books of consignee

Consignment A/c dr. To Goods sent on consignment A/c.

For expenses incurred by consignor

*** ***

No Entry

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 Consignees A/c.

*** *** ***

Consignors A/c dr. To Cash/bank A/c. To Bills payables A/c .

*** *** ***

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 Consignees A/c.

For Sale of goods by consignee as per account sale

*** ***

Consignors A/c dr. To Cash/bank A/c.

*** ***

Consignees A/c dr. To Consignment A/c.

*** ***

Cash/bank A/c dr. Consignment Debtors A/c dr. To Consignors A/c.

(Go through the journal entries I have sent in the other file)

*** *** ***

For Commission payable to consignee Consignment A/c dr. To Consignees A/c.

For Consignment Stock Consignment stock A/c dr. To consignment A/c. For profit or loss on consignment *** ***

*** ***

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

*** ***

No Entry

Consignment A/c dr. (Profit) To general profit & loss A/c. General profit & loss A/c Dr. (Loss) To Consignment A/c. To close the goods sent on consignment A/c Goods sent on consignment A/c dr. To Trading A/c.

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

No Entry No Entry

*** ***

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.

For unsold goods (closing goods)

No Entry ***

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 ( when del credere commission is not paid on credit sales) To Stock reserve A/c (if closing stock recorded at Invoice price) To Gen. profit & loss A/c (for profit) *** By Consignment stock A/c (invoice / (cost or Market value is less) By Gen. profit & loss A/c (for loss) *** By Consignee's A/c -Sales Cash Credit Purchased by consignee On Recommendation of consignor

Amount ***

*** ***

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

***

*** ***

***

*** ***

*** ***

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) 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

Amount *** *** ***

***

***

***

Goods sent on Consignment A/c

Particulars To Consignment A/c (difference)-when goods sent at Invoice To Trading A/c Amount Particulars *** By Consignment A/c (Cost or Invoice) Amount ***

*** ***

***

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

Amount *** *** ***

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)

*** ***

***

***