Multiple choice

Which of the following statements is not true?

  1. If del credere commission is allowed, bad debt will not be recorded in the books of consignor.

  2. If del credere commission is allowed, bad debt will be debited in consignment account.

  3. Del credere commission is allowed by consigner to consignee

  4. Del credere commission is generally relevant for credit sales
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 Del credere Commission is paid by the consignor to the consignee to prevent himself against loss of bad debts. The consignment account maintained by the consignor will not get affected in case of bad debts, if del credere commssion is being paid to the consignee since consignee will be responsible for bad debts not consinor.

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