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Buyer and consignee different

A/c entries 567 views 2 replies

ankit

student

50 Points Joined March 2016

Dear Members,

I want to know the accounting entries, if buyer and consignee both are different.

Suppose, A = supplier, B = buyer, C = consignee

A sells goods to B and material supplied directly to C of 1500 kg. What accounting entry in books of B at the time of receiving of Invoice, and what documents to be made for C.

Kindly help

Replies (2)

its depends upon the relationship between B and C
if both are independent and as part of sales then book te A's invoice as purchase in B's books and raise the sale invoice on C, so that this document as purchase for C
if the relationship is there as godown/stores/ own account/consignment
then book the A's invoice as purchase in B's books storage location as C, another entry based on consumption/ consignment sale etc..