Question

Differentiate between general commission and del credere commission in accounting form

Answer 1

Hey,

Overriding Commission

Commission given to the consignee in addition to the normal commissionPurpose of such incentive is to motivate the consignee to create market for new products.

· Sometimes, this additional commission is allowed to consignee where certain sales limits have been exceeded.

Del Credere Commission

Commission given to the consignee in addition to the normal commissionPurpose is for the consignee to bear/absorb the loss on account of bad debts if any, arising out of credit sales of consignment goodsComputed based on total sales unless it is agreed on credit sales.

· Once the consignee is given del credere commission, he become liable to all losses on account of non-recovery of del credere comission.

~Azzy

Answer 2

Answer:

here u go buddy hope it help u!!!