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Consignment Accounting Overview

The document discusses accounting entries related to consignment transactions from the perspective of both the consignor and consignee. Key accounts include the consignment account, goods sent on consignment account, consignee's account, and commission account. The document provides 14 journal entries recording transactions such as goods sent on consignment, expenses incurred and paid by both parties, goods sold and unsold, payment of commission, and closing of accounts.

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thella deva prasad
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50 views9 pages

Consignment Accounting Overview

The document discusses accounting entries related to consignment transactions from the perspective of both the consignor and consignee. Key accounts include the consignment account, goods sent on consignment account, consignee's account, and commission account. The document provides 14 journal entries recording transactions such as goods sent on consignment, expenses incurred and paid by both parties, goods sold and unsold, payment of commission, and closing of accounts.

Uploaded by

thella deva prasad
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

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

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