Del-credere Commission is allowed to cover
A. All types losses
B. Abnormal loss
C. Normal loss
D. None of the above
Answer: Option D
Solution(By Examveda Team)
Del Credere Commission. It is a special commission given by the consignor to the consignee. When of commission is given, the consignee undertakes upon himself the risk of any .bad debts arising out of the credit So this Del Credere commission in the form of insurance premium against the risk of bed debts.This Question Belongs to Commerce >> Accounting
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3. Del credere commission is allowed to cover-
(a) Normal loss
(b) Abnormal loss
(c) Loss due to bad debts
(d) All of the above
A del credere commission is paid by the consignor to his agent for taking additional risk of recovery of debts from the consignee on an account of credit sales made by him (agent) on consignor's behalf.
To increase the sale and to encourage the consignee to make credit sales, the consignor provides an additional commission generally known as del-credere commission. Generally, it is calculated on total sales i.e. sum of cash sales and credit sales.
What is del creder and what are the example????
It is Given for cover the risk of Bad debt.