Accounting entries in the books of consignor

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  1. 1. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Accounting entries in the books of Consignor MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
  2. 2. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam 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:
  3. 3. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam 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)
  4. 4. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam In case of inventories on consignment: To close the goods sent on consignment account: Accounting Entries - contd
  5. 5. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam 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
  6. 6. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam 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
  7. 7. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam 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
  8. 8. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Watch Full Video course & take quiz visit https://www.meraskill.com https://meraskill.com/ca-cpt/cpt-notes https://meraskill.com/ca-cpt/cpt-exam http://www.meraskill.com/cpt-question-paper https://meraskill.com/ca-cpt/cpt-syllabus https://www.meraskill.com/fridayrelease MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam