Consignment

For entry 3 advance paid to consignor... consignor is receiver so debit his a/c ...and cash goes out from bank so credited

Yamuna S

CA Inter

★ 15K+

29-Oct-22 10:12

You mean Debit the Receiver and Credit the giver ok I understood it

Thread Starter

Ardhendu Sekhar Acharya

CMA Inter

★ 250

29-Oct-22 10:13

Yes

Yamuna S

CA Inter

★ 15K+

29-Oct-22 10:13

Thank you Can you tell the logic or concept behind the second entry also ?

Thread Starter

Ardhendu Sekhar Acharya

CMA Inter

★ 250

29-Oct-22 10:14

The same applies there too..for commission paid to consignor ....consignor is receiver of such commission and cash from bank goes out

Yamuna S

CA Inter

★ 15K+

29-Oct-22 10:15

But Commission is received so cash comes into the bank of the Consignee. Commission is paid to the Consignee by the Consigner. So cash comes in the bank of the Consignee. So how bank account of Consignee is debited ?

Thread Starter

Ardhendu Sekhar Acharya

CMA Inter

★ 250

29-Oct-22 10:22

Yes ...let's wait for others to answer

Yamuna S

CA Inter

★ 15K+

29-Oct-22 10:33

Ok

Thread Starter

Ardhendu Sekhar Acharya

CMA Inter

★ 250

29-Oct-22 10:35

In entry 2 consignee intitially pay the expenses related to consignment. Here cash goes out of the business hence credited. But consignor is liable to reimburse the expenses. Hence debited the receiver of the benefit

Naveen Kumar

CA Final

★ 3K+

29-Oct-22 11:17

2 - receivable from consignor.

CA Suraj Lakhotia

Admin

29-Oct-22 11:20

In 2nd entry Consignor is debtor for consignee. So we debit him.

Dharani Chakravarthi

CA Final

★ 8K+

29-Oct-22 11:58