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Consignment Accounting Journal Entries

This document outlines 10 journal entries related to consignment accounting in the books of the consignee. It covers entries for accepting bills from the consignor, recording sales, expenses incurred on behalf of the consignor, commission receivable, collections from debtors, bad debts, and final settlement with the consignor.

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770 views2 pages

Consignment Accounting Journal Entries

This document outlines 10 journal entries related to consignment accounting in the books of the consignee. It covers entries for accepting bills from the consignor, recording sales, expenses incurred on behalf of the consignor, commission receivable, collections from debtors, bad debts, and final settlement with the consignor.

Uploaded by

kamalkav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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

When a bill is drawn by the Consignor on Consignee


3
and when Consignee accepts the bill
Bills Receivable A/c Dr.
To Consignee A/c

When the Consignor discounted the bill with his


4
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

In the Consignment A/c, if the credit side is greater


8
(Profit)
Consignment A/c Dr.
To Profit and Loss A/c

In the Consignment A/c, if the debit side is greater


9
(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

For Sales effected on behalf of Consignor - Credit


3
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

For expenses incurred on behalf of Consignor - if


5
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

When Bad debts occur - if delcredere commission is


8
paid
Bad debts A/c Dr.
To Debtors A/c

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


To Bad Debts A/c

When Bad debts occur - if delcredere commission is


9
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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