Vidyalelo
Commerce · Q333

Accounting

Graduate and Post Graduate · Commerce · question 333

Q333

Del-credere Commission is allowed to cover

A.
All types losses
B.
Abnormal loss
C.
Normal loss
D.
None of the above
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
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.