Introduction to Consignment Accounting: Types of Commission in Consignment

The video tutorial covers the concept of consignment and the different types of commissions involved: ordinary, del credere, and overriding commissions. It explains how each type of commission is calculated and the conditions under which they are applied. The tutorial also includes an example problem to demonstrate the calculation of these commissions in a practical scenario.

What happens if a debtor does not pay the amount in a consignment?

How does the consigner protect against the risk of bad debts?

What is the significance of specifying the commission type in a consignment agreement?

In the example provided, how is the total commission payable to Peter calculated?