CONSIGNMENT

Accounting Treatment of CONSIGNMENt TrANSACTIONS

 NECESSARY AccounTS required in the bookS

of cONSIGNOR

 Consignment A/c
 Consignee's A/c
 Goods sent on Consignment A/c
 NECESSARY AccounTS required in the bookS
of cONSIGNEE

 Consignor's A/c
 Commission A/c
 Journal EnTRIES Relating to CONSIGNMENt TrANSACTIONS

TrANSACTIONS BookS of CONSIGNOR BookS of CONSIGNEE

(1) Goods sent on Consignment A/c Dr. No entry is passed when goods are received.
consignment To Goods sent on consignment A/c

(2) Expenses Consignment A/c Dr. No entry is passed for expenses incurred by consignor.
incurred by To Cash/Bank A/c
consignor

(3) Advance Cash/Bank/B/R A/c Dr. Consignor's A/c Dr.

received by To Consignee's A/c To Cash or Bank A/c
consignor

(4) If B/R Bank A/c Dr. No entry is passed when acceptance is discounted by
discounted by Consignment A/c (for discount) Dr. consignor.
Consignor To B/R A/c

(5) Expenses paid Consignment A/c Dr. Consignor's A/c Dr.

by consignee To Consignee's A/c To Cash or Bank A/c
(6) Goods returned Goods sent on Consignment A/c Dr. No entry is passed for returning goods to
by consignee To Consignment A/c consignor.
 
(7) Goods sold by Consignee's A/c Dr. Cash/Bank A/c (Cash Sales) Debtor's Dr.
Consignee To Consignment A/c A/c (Credit Sales) Dr.
To Consignor's A/c
 

(8) Amount of Commission Consignment A/c Dr. Consignor's A/c Dr.

of consignee To Consignee's A/c To Commission A/c
 

(9) Unsold Stock with Unsold Stock or stock on No entry is passed for unsold stock that remained.
Consignee consignemtn A/c Dr

To Consignment A/c

(10) Balance Cash/Bank A/c Dr. Consignor's A/c Dr.

received from To Consignee's A/c To Cash / Bank A/c
Consignee
(11) Amount of Consignment A/c Dr. No entry passed in consignee's books.
Profit on To Profit & Loss A/c
Consignment

(12) For Loss on Profit & Loss A/c Dr. No entry is required in the books of
Consignment To Consignment A/c Consignee.

(13) Closing Goods Goods sent on consigment A/c Dr. No entry is required.
sent on Consigment To Trading A/c
A/c

(14) Transferring No entry Commission A/c Dr.

commission A/c To Profit & Loss A/c
 Consignment Account
DR CR

Particulars Amouont Particulars Amount

Rs. Rs.

TO Opening stock BY : Consignee a/c :

-TO Goods sent for consignment XXX Cash sale xxx XXX
-TO Cash (expenses of consignor) XXX Credit sale xxx
XXX XXX
-TO Consignee a/c ( expenses of Own purchase : xxx
consignee) XXX BY : Closing stock ?
-TO Consignee a/c (commission) XXX BY : P & L a/c ( if loss)
-TO Consignee a/c (bed debts) XXX
-TO P&L a/c ( if profit) ?

XXXX XXXX
 Goods Sent for Consignment Sale Account
Dr. Cr.
Particulars Amount Particulars Amount
Rs. Rs.
To Trading a/c XXX By Consignment a/c XXX

XXX
 Consignee’s Account
Dr. Cr.
Particulars Amount Particulars Amount
Rs. Rs.

TO: BY :
-Consignement a/c : XXX -Consignment a/c
Cash Sale xxx ? (Expenses of Consignee)
Credit Sale xxx -Bills receivable a/c XXX
Own Purchase xxx ( full amount of bills)
-Balance c/f -Bank/Cash a/c XXX
(advance paid to consignor)
-Consignment a/c XXX
(Commissiin of consignee)
-Consignment a/c ( if any bet XXX
debts)
-Bank/Cash a/c XXX
(for final payment) ?

XXXX XXXX