Del Credere commission is allowed to the consignee to bear __________.

Normal loss

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Abnormal loss

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Risk of bad debts

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Profit on account of sender

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Solution

The correct option is D Risk of bad debts
Its a special commission given by the consignor to the consignee. When the del credere commission is given, the consignee undertakes the risk of bad debts arising out of the credit sale.

Suggest Corrections

A. Bad Debts A/c To Consignment Debtors A/c	Dr.
B. Bad Debts A/c To Profit & Loss A/c	Dr.
C. Bad Debts A/c To Consignee A/c	Dr.
D. No entry is required to be passed