• Parties: Consignor and consignee
  • Ownership of a goods: In consignment, there is no transfer of ownership in the goods from consignor to consignee. The consignor remains the owner of goods till they are actually sold by the consignee.
  • Mutual relation between Parties: Is that of principal and agent.
  • Expenses after despatching the goods: Are to be borne by the consignor.
  • Risk: Remains with the consignor.
  • Return of goods:  Is possible if goods are not sold by consignor.
  • Proforma Invoice:  Consignor prepares only a proforma invoice.
  • Profit/Loss: Consignee is not in any way connected with Profit loss on sale.


  • Parties: Seller and buyer.
  • Ownership of a goods: In the case of sale, ownership in the goods is immediately transferred from the seller to the buyer.
  • Mutual relation between Parties: Is that of debtor and creditors.
  • Expenses after dispatching the goods: Are borne by the buyer.
  • Risk: Passes to the buyer.
  • Return of goods:  Is not possible as goods once sold are not return able.
  • Proforma Invoice:  Seller prepares a sales invoice.
  • Profit/Loss: After the sale is complete, the profit/loss belongs to buyer.

Tags: B.Com

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