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Answer» Difference between Consignment and Sale | Difference Basis | Consignment | Sale | | Relation between two parties | Relation between two parties is that of consignor and consignee. | Relation of seller and buyer. Relation of creditor-debtor in case of credit sale. | | Transfer of goods ownership | Ownership of goods remains with the consignor even if the goods sent by consignor to consignee. | Ownership of goods is transferred to the buyer with the sale of goods | | Risk of goods | Risk of goods always remains with the consignor. | Risk of goods is also transferred to the buyer with the transfer of goods to the buyer. | | Earnings | Consignee receives commission on sale of goods and consignor earns profit. | Seller earns profit on sale of goods. | | Sending statement | Proforma invoice is sent on consignment of goods. | Invoice is given on sale of goods. |
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