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Accounting entries in the books of Consignor

MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam

MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam

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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MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam