Accounting in the books of consignee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2016 hello dear, if a dealer (consignee) sells the goods on consignment basis ( i.e. purchase from consignor against F- Form and then sold ) then my Query is :
1) What will be the accounting treatment in the books of consignee {pls explain me step by step accounting entries}
2) whether such purchase and sale on consignment basis will be included/counted in the turnover limit of Rs. 1 Crore for income tax Purpose ( if not , then why ? )
3)whether such purchase and sale on consignment basis will be included/counted In the sale tax return (As per Punjab VAT Act , if sale of these goods in punjab) (if not , then why ?)
4) Explain various types of consignment .

Thanks in advance................

Rupesh Jain

Rupesh Jain (Expert)
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23 May 2016 when goods send: then sale a/c Goods recd on consignment a/c
and make the sale then you credit the above a/c or make goods sold (recd on consignment ) a/c
you have to show material recd or sold against consignment goods recd. and pay the sales tax as rate applicable in your state and also take audit report if sale exceeds rs. 100 lacs in year.