Q.Delcredere commission.

Del credere commission is an extra commission given to the consignee for guaranteeing the recovery of debts arising from credit sales. In return, the consignee stands the loss of any bad debts, and the consignor need not record bad debts in the Consignment Account.

This is a standard AP Inter 2nd-year (Commerce) consignment question, aligned with the NCERT/CBSE commerce curriculum.

Normally the consignee only sells goods and is not responsible if a customer fails to pay. To encourage the consignee to make credit sales and to protect himself, the consignor may allow an additional commission called del credere commission. In exchange for it, the consignee undertakes to bear the loss of any bad debts.

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