Consignment is not a sale. Hence, the consignee does not treat the consignor as his creditor. The consignee does not make any entry for the goods consigned by the consignor and received by consignee, because the goods do not belong him. Following is the procedure for recording transactions in the books of consignee.
1. For remitting advance
Consignor's A/c...................Dr.
To cash/bank/bills payable A/c
2. For bills met on due date
Bills payable A/C ................Dr.
To Bank A/c
3. For incurring expenses
Consignor's A/C.....................Dr.
To Cash/bank A/c
4. For making cash sale
Bank/Cash A/C................Dr.
To consignor's A/c
5. For credit sale
Consignment debtor's A/C............Dr.
To consignor's A/c
6. For charging commission
Consignor's A/c ...........Dr.
To commission A/c
7. For collection of debt
Bank A/C ..................Dr.
To consignment debtor's A/c
8. For final settlement of account with consignor
Consignor's A/C.............Dr.
To cash or bank A/c
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