Question

Consignee will get 6% ordinary commission on sales (Del-credere commission included) How to know the amount of Del-credere commission?​

Answer 1

Answer:

Accounting Entries in books of Consignee

There are no entries passed in the books of the consignee for the consignment of goods sent by the consignee and also for any expenses incurred by the consignor. However, the advance paid to the consignor, sales made, expenses incurred on the consignment and commission earned needs to be recorded.

A consignee is often allowed del-credere commission in addition to the usual ordinary commission. In the case where he is allowed del-credere commission, bad debts are borne by him and not the consignor.