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Question

Which of the following statement is not true ______________________.

A
If del-credere commission is allowed , bad debt will not be recorded in the books of consignor.
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B
If del-credere commission is allowed , bad debt will be debited in consignment account.
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C
Del - credere commission is allowed by consignor to consignee.
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D
Del -credere commission is generally relevant for credit sales.
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Solution

The correct option is A If del-credere commission is allowed , bad debt will be debited in consignment account.
When the del-credere commission is provided to the consignee the bad debts are borne by him. ... Consignor account cannot be debited as consignee is to bear the loss of bad debts because he is being given del credere commission.

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