Accounting entries in the books of consignor

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Accounting entries in the books
of Consignor
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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/c
For 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/c
To 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 sheet
Consignment a/c - Nominal account - Profit / Loss a/c
Goods 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 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
Goods sent on Consignment a/c

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