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Question

If Del credere commission is allowed to consignee the treatment of bad debt (in the books of Consignor) _________________.

A
will not be recorded in Consignor's books
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B
will be debited in Consignor's A/c
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C
will be charged to General P/L A/c
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D
will be recoverable along with credit sales
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Solution

The correct option is A will not be recorded in Consignor's books
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.
In the case where he is allowed del-credere commission, bad debts are borne by him and not the consignor.

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