Sale on consignment basis

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Bhavesh (Querist)
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22 November 2012 What is a Sale on Consignment Basis? what effect to be passed in the books for the same. In Case the Debtors return the some part of sale what effect has to be given for the same. pls. kindly let me know. thanks in advance

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)
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23 November 2012 Dear sir ,

Trading arrangement in which a seller sends goods to a buyer or reseller who pays the seller only as and when the goods are sold. The seller remains the owner (title holder) of the goods until they are paid for in full and, after a certain period, takes back the unsold goods. Also called sale or return, or goods on consignment. See also guaranteed sale.