In case of del-credere commission, the liability for bad debts is on ___________.

Consignor

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Consignee

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Customer

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None of the above

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Solution

The correct option is D Consignee
When the consignee sells goods on behalf of the consignment, he gets a commission, wherein he is not responsible for any kind of debts that may arise. However, when the consignee is made responsible for the bad debts, he receives a commission over and above the ordinary commission, called del credere commission. So, in the case of del credere commission, the liability of bad debts is on the consignee.

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