4. Consignment
Consignor Goods Consignee
(owner of the goods or producer) Consignment Agent to sell
Consignor expenses
Cost of material
Packing, Loading/ Freight
Transit insurance, Duty/Tax,
other expenses
Consignee expenses:
• Non Recurring expenses (unloading/freight/
duty/tax)
• Recurring Expenses (Rent, salary, advertisement,
insurance, other expenses)
• Commission (simple, Delcredere, Over-riding)
• sales
• Commission (simple, Delcreder, Over-riding)
Net sale proceeds to
consignor
Consignment account
Goods sent on consignment account
Consignees account
Consignor account
Commission account
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17. Sr.No. In the Books of Consignor Dr Cr In the Books of Consignee Dr Cr
1 When goods are sent to the consignee
Consignment A/c Dr
To Goods Sent on Consignment A/c
(Being Goods Sent on Consignment)
Xx
xx
No need to do any Entry in this case
2 Expenses Incurred by Consignor
Consignment A/cDr
To Cash/Bank A/c
(Being Expenses incurred on consignment)
Xx
xx
Not Applicable
3 Advance given by consignee
Cash/Bank A/cDr
To Consignee’s A/c
(Being advance received from consignee)
Xx
xx
Consigner A/cDr
To Bank/Cash A/c
(Being Advance amount paid to Consignor)
Xx
xx
4 Expenses Incurred by Consignee
Consignment A/cDr
To Consignee’s A/c
(Being Expenses incurred by consignee)
Xx
xx
Consigner A/cDr
To Bank/Cash A/c
(Being Expenses incurred on goods received on
consignment)
Xx
xx
5 Sale by Consignee
Consignee’s A/cDr
To Consignment A/c
(Being Expenses incurred by consignee)
Xx
xx
Cash (for cash sale) A/cDr
Debtors (for Credit Sale) A/c Dr
To Consignor A/c
(Being goods sold)
Xx
xx
6 Commission to Consignee
Consignment A/cDr
To Consignee’s A/c
(Being Commission on sale due to consignee)
Xx
xx
Consigner A/cDr
To Commission A/c
(Being Commission earned)
Xx
xx
7 Remittance from Consignee
Cash/Bank A/cDr
To Consignee’s A/c
(Being due amount received from consignee)
Xx
xx
Consigner A/cDr
To Bank/Cash A/c
(Being Balance due Payment made to consignor)
Xx
xx
8 Entry for Profit on Consignment
Profit & Loss A/cDr
To Consignment A/c
(Being Profit earned on consignment)
Xx
xx
Not Applicable
9 Loss on Consignment
Consignment A/cDr
To Profit & Loss A/c
(Being Loss incurred on Consignment transferred to the profit & Loss
Account)
Xx
xx Not Applicable