Consignment Sales

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2011 Namaste Experts,

I am a Dealer for the branded Ready made garments.

I sell on commission basis & get reimbursement of some expenses.

I sell to the final consumers.

Now,Please let me know how do the accounting of purchase & sales.

Thanking you in anticipation.

REGARDS.

U S Sharma

U S Sharma (Expert)

20 May 2011 Means your sales is on MRP basis fixed by company

so there is no diff between purchase and sales, except your commission.

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2011 Thanks u very much.

In continuation of my earlier qn. we pay to the co only the amt collected on sales after deducting our commission + expenses. we dont make the payment for the purchases. In such cases also need we to account in the way you suggested sir.

Thanks & Regards

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)

05 June 2011 If you are only agent and relationship between you and brandowner is Principal to agent you need not to book Sales & Purchase. Tell us more about your agreement with brandowner otherwise it is difficult to advise on small facts, because in garment business some time brandowner transfer the right to middle seller but in common language termed them as a agent, so better to get advise from any local CA after showing them aggrement between you and brandowner

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