BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Recurring Expenses: The consignee incurs these expenses after the goods reached his place. These expenses are of maintenance of goods type’s expenses. Commission: Commission is the reward/ consideration for the sale of goods on behalf of the consignor. It is as per the consignment agreement.

Detailed explanation-2: -Ordinary Commission The ordinary commission is the fees payable by the consignor to the consignee for the sale of goods when there is no guarantee for the collection of money from the consumer.

Detailed explanation-3: -Commission:-The commission is the remuneration paid by the consignor to the consignee for the services rendered to the former for selling the consigned goods. Three types of commission can be provided by the consignor to the consignee, as per the agreement, either simultaneously or in isolation.

Detailed explanation-4: -Del credere commission is allowed by the consignor to the consignee for taking responsibility of the bad debts that may arise. This means it is usually allowed in the case of credit sales.

Detailed explanation-5: -The consignor is a creditor in the books of the consignee to whom the proceeds from sale are payable. So, the commission earned from sales from the consignor is debited in the consignor’s account in the books of consignee.