Journal Entries in the books of Consignor and Consignee

When Del credere commission is not given..

In the books of Consignor
For Credit sales Consignment debtors A/c Dr. To Consignment A/c. For Collection from debtors Consignees A/c Dr. To Consignment debtors A/c For Bad debt Bad debt/Consignment A/c Dr. To Consignment debtors A/c *** *** No Entry *** *** Cash/bank A/c Dr. To Consignors A/c *** *** *** *** No Entry

In the books of consignee

Alternative Entries when Del credere commission is not given

For credit sales Consignees A/c Dr. To Consignment A/c For Bad debt and collection from debtors Consignment A/c Dr. (Bad debt) To Consignees A/c *** *** Cash/bank A/c Dr. Consignors A/c Dr. (Bad debt) To Consignment debtors A/c *** *** *** *** *** Consignment debtors A/c Dr To Consignors A/c. *** ***

When Del credere commission commission is given..

In the books of Consignor
For credit sales Consignees A/c Dr. To Consignment A/c... For Bad debt and Collection from debtors No Entry Cash/bank A/c Dr. Bad debt A/c Dr. To Consignment debtors A/c *** *** *** *** *** Consignment debtors A/c Dr. To Consignors A/c.. *** ***

In the books of consignee

For commission and del credere commission Consignment A/c Dr. To Consignees A/c. *** *** Consignors A/c Dr. To Commission Income A/c. *** ***

Adjusting B/D against Commission, and remaining balance of Commission transferred to P&L A/c No Entry Commission Income A/c Dr. To Bad debt A/c.. Commission Income A/C Dr. To Profit & Loss A/c. *** *** *** ***