DEPRTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : CH. ANURADHA
Designation : Lecturer
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic for women,
Bheemunipatnam
Year/Semester : IV semester
Subject : Accountancy-III
Sub-code : CCP-402
Topic : CONSIGNMENT ACCOUNTS
Sub Topic : Journal Entries in the books of Consignee
Duration : 50 Minutes
Teaching aids : PPT, ANIMATIONS
CCP402.4 1
Objectives:

On completion of this period, you would be

able to:
 Record Journal Entries in the books of
consignee

CCP402.4 2
Recap
In the last class, we discussed about
 Accounting treatment in the books of consignor
 Open consignment a/c, consignee’s a/c & goods
sent on Consignment a/c
 Post the journal entries in the respective
accounts
 Closing the accounts

CCP402.4 3
Journal entries in the book of consignee

1. When the goods received from the

consignor

No entry is made in the books of consignee

CCP402.4 4
2. For expenses incurred by consignor

No entry is made in the books of consignee

CCP402.4 5
3. For advance paid by the consignee to
consignor
Consignor’s a/c Dr.
To Cash/Bank/bills payable a/c
(Being the advance paid to consignee)

CCP402.4 6
4. For expenses incurred by consignee
Consignor’s a/c Dr.
To Cash/Bank a/c
(Being expenses incurred by consignee)

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5. When consignee sells goods
Cash/Bank a/c (Cash sales) Dr.
To Consignor’s a/c
(Being sales made by consignee)

CCP402.4 8
6. When commission on sales is due
Consignor’s a/c (Cash sales) Dr.
To Commission a/c
(Being the commission receivable)

CCP402.4 9
7. For final remittance to consignor
Consignor’s a/c (Cash sales) Dr.
To Cash/Bank/bills payable a/c
(Being the final remittance to consignor)

CCP402.4 10
Summary

We have discussed about

 Journal Entries in the books of Consignee

CCP402.4 11
 Quiz

1. What is the Journal entry in the books of Consignee

when goods are received from the consignor
a. Goods a/c Dr.
To Consignor a/c
b. Receivables a/c Dr
To Consignor a/c
c. No Entry
d. None
CCP402.4 12
 Quiz

1. What is the entry in the books of consignee for

expenses incurred by consignor

a. Expenses a/c Dr.

To Bank a/c
b. Consignor a/c Dr.
To Consignment a/c
c. No Entry
d. None
CCP402.4 13
 Quiz

1. What is the entry in the books of consignee for advance paid by

the consignee to the consignor?

a. Advance a/c Dr.

To Consignee a/c

b. Consignor a/c Dr.

To cash/Bank a/c

c. No Entry

d. None

CCP402.4 14
 Quiz

1. What is the entry for goods sold?

a. Sales a/c Dr.
To consignor a/c
b. Cash a/c Dr.
To consignor a/c
c. No Entry
d. None

CCP402.4 15
Quiz

1. What is the entry for Commission on sales due?

a. Cash a/c Dr.
To Commission a/c
b. Consignor a/c Dr.
To Commission a/c
c. No Entry
d. None

CCP402.4 16
Assignment

Write the Journal Entries in the books of

Consignee for :
 Goods received
 Expenses of consignor
 Expenses of consignee
 Commission due
 Advance paid
 Remitting the balance

CCP402.4 17