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Question
When commission becomes due to Consignee for the sales, then which of the following entry will be passed in the books of Consignee?
A. Consignment A/c
To Commission A/c
Dr. B. Consignment A/c
To Consignor A/c
Dr. C. Commission A/c
To Consignment A/c
Dr. D. Consignor A/c
To Commission A/c
Dr.
When commission becomes due to Consignee for the sales, then which of the following entry will be passed in the books of Consignee?
| A. Consignment A/c To Commission A/c | Dr. |
| B. Consignment A/c To Consignor A/c | Dr. |
| C. Commission A/c To Consignment A/c | Dr. |
| D. Consignor A/c To Commission A/c | Dr. |
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Solution
The correct option is D D
Commission allowed by the consignor to the consignee is an income for the consignee. So when it becomes due, the consignee will credit the commission account and debit the consignor's account as it is receivable from the consignor in his books. So the entry will be:Consignor's A/c................Dr. To Commission A/c
Commission allowed by the consignor to the consignee is an income for the consignee. So when it becomes due, the consignee will credit the commission account and debit the consignor's account as it is receivable from the consignor in his books. So the entry will be:
Consignor's A/c................Dr.
To Commission A/c
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