accounting entries in the books of consignor
TRANSCRIPT
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Accounting entries in the books of Consignor
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![Page 2: Accounting entries in the books of consignor](https://reader034.vdocuments.mx/reader034/viewer/2022042509/55ca4116bb61eb10518b4827/html5/thumbnails/2.jpg)
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On sending/(consigning) of goods:
For payment of expenses:
For receipt of advance from consignee:
On receipt of account sales(for sales made by consignee):
Accounting Entries - Books of Consignor
(for expenses incurred by consignee):
(for commission payable to consignee):
(for remittance by consignee):
For profit on consignment:
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On sending/(consigning) of goods:Consignment a/c Dr To Goods sent on Consignment a/cFor payment of expenses:Consignment a/c Dr To Bank a/c
For receipt of advance from consignee:Bank a/c/ Bills receivable Dr To Consignee a/c
On receipt of account sales(for sales made by consignee):Consignee a/c Dr To Consignment a/c
Accounting Entries - Books of Consignor
(for expenses incurred by consignee):Consignment a/c Dr To Consignee a/c
(for commission payable to consignee):Consignment a/c Dr To Consignee a/c
(for remittance by consignee):Bank a/c / Bills receivable a/c Dr To Consignee a/c
For profit on consignment:Consignment a/c Dr To Profit on Consignment a/c(reverse the entry in case of loss)
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In case of inventories on consignment:
To close the goods sent on consignment account:
Accounting Entries - contd
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In case of inventories on consignment:Consignment Stock a/c Dr To Consignment a/cTo close the goods sent on consignment account:Goods sent on Consignment a/c Dr To Trading a/c or Manufacturing a/c
Consignment Stock a/c - Real account - Balance sheetConsignment a/c - Nominal account - Profit / Loss a/cGoods sent on Consignment a/c - Real account
Accounting Entries - contd
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Consignment account - Format
Particulars ₹ Particulars ₹
To Goods sent on consignment xxx By Goods sent on consignment (returns)
xxx
To Bank - (consignor expenses) xxx By Consignee (cash sales) xxx
To Consignee -(consignee expenses)
xxx By Consignment Stock xxx
To Consignee -(commission) xxx By Loss on Consignment transferred to General Profit and Loss
xxx
To Profit on Consignment transferred to General Profit and Loss
xxx
xxx xxx
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Other accounts - Format
Particulars ₹ Particulars ₹
To Consignment (with cash sales) xxx By Bank / Bills Receivable xxx
By Consignment (consignee expenses & commission)
xxx
By Bank (settlement of balance) xxx
xxx xxx
Consignee a/c
Particulars ₹ Particulars ₹
To Consignment (goods returned by consignee)
xxx By Consignment (goods sent) xxx
To Trading a/c / Purchase a/c
xxx xxx
Goods sent on Consignment a/c
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