Q.Del credere commission.

Del credere commission is an additional commission given to the consignee for bearing the risk of bad debts on credit sales, in return for guaranteeing realisation of the sale proceeds. In a consignment, apart from ordinary and over-riding commission, the consignor may allow the consignee an extra commission called del credere commission. In return, the consignee undertakes to bear any loss arising from bad debts on credit sales — that is, the consignee guarantees the collection of the money. It is usually calculated as a percentage of total sales (both cash and credit, unless stated otherwise). When del credere commission is allowed, the bad debts become the consignee's loss and are not debited to the Consignment Ac …