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Consignment

When consignee accepts a bill we credit it to the consigne's a/c as " by bills receivable" what would happen when the bill is dishonoured? What entry would the consignor pass?


Akshita  Prava

Akshita Prava

CA Foundation

35

25-Aug-20 13:02

23

Answers (3)

The entry for B/R accepted by consignee drawn by consignor Is B/R a/c ....Dr To consignee a/c (Being B/R received from consignee) Later this advance will be adjusted from the amount receivable from consignee. If bill is dishonoured, the entry will be reversed Consignee a/c ... Dr To B/R a/c (Being bills receivable dishonoured) There will be no amount remaining to be adjusted from amount receivable from consignee. Consignee will no more be as a creditor in the books B/R will be ceased to exist hence it's account will not appear in the books. Hope it helps!!!


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

25-Aug-20 14:36

If any noting charges are incurred for bills receivable To the amount of noting charges consignee will be debited Consignee a/c.... Dr To cash/Bank a/c (Being noting charges incurred due to consignee's dishonour of bill).


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

25-Aug-20 14:43

OK. Thank you


Akshita  Prava

Akshita Prava

CA Foundation

35

25-Aug-20 16:04

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