Question

Del-credere commission is calculated on -

• A. Credit sales
• B. Cash sales
• C. (A) or (B)
• D. Both (A) & (B)

Answer 1

The correct option is D Both (A) & (B)

When the consignor allows a commission over and above the ordinary commission to the consignee because the consignee takes responsibility of the bad debts that may occur, it is known as del credere commission. It is usually calculated on total sales i.e. both cash and credit sales or according to the terms of consignment as decided beforehand by the consignor and the consignee.