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What is double entry treatment of DISCOUNT Allowed and Received?
Wiki User
∙ 12y ago
Discount allowed: original entry made in the discount allowed column on the debit side of the cash book and at the end of the month debited(after balancing the cash book) in the nominal ledger. The credit entry is made in the personal account of buyer.
Discount received: original entry made in the discount received column on the credit side of the cash book and at the end of the month credited(after balancing the cash book) in the nominal ledger. The debit entry is made in the personal account of seller.
Wiki User
∙ 12y ago
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How do you record cash received from a customer on a double entry journal?
debit cash / bankcredit accounts receivable
What does a bank do when it receives double endorsed checks?
I received a check that has my name and my son's name we both endorsed it bank wont honor it until he is physically present what can I do
What is the journal entry for collections on account?
Collections on account refer to money collected from customers who have already received goods/services on credit. Hence, the double entry is: Dr Cash Cr Accounts receivable
Double account system?
Type your answer here double accout system is the system where all the entry has to be kept as a double. ...
Distinguish single and double entry system?
Single entry records only one aspect of transaction, such as:- - Cash received from sale is recorded in cash register only- - Goods sold on credit are recorded in the individual's account only- - When cash is received from the customer, to whom the something was sold on credit, the receipt may be just recorded in the account of individual onlyDouble entry records both aspects of transaction, such as:- - When good are sold on cash the two aspects of the transaction are - the seller has sold goods and received cash against them. The goods sold are benefit transferred to the purchaser (Credit) whereas the cash received if the benefit against the goods sold (Debit).- - When the goods are sold on credit the benefit given is the same i.e. goods sold but the benefit received is not cash but a right to receive cash from the customer. Therefore, in this case Debit is given to customer's account (account receivable) instead of cash.- When cash is received from the customer the right to receive cash ceases. So, the benefit received is cash and benefit transferred is the right to receive cash. Here cash will be debited and customer will be credited.
When did the discount double check commercial come out?
october
Who is the girl in the discount double check commercial?
Freesia domineering
What is Aaron Rodgers touchdown dance?
The Discount Double Check
Who is the packers fan in the discount double check commercial?
female
What is Aaron Rodgers touchdown dance called?
The Discount Double Check
Who is the female actor in discount double check commercial?
Sunny Lane
Is it a guy or girl in the window in the discount double check commercial?
In the Discount Double Check commercial, the person in the window is a guy.
Who is the actress in the discount double check commercial?
Aside from Aaron Rodgers who plays himself, Adrian Martinez plays the crazed "cheese-head" Packer Fan in the Discount Double Check Commercials.
Is double taxation allowed in the Philippines?
yes.
What is the Difference between trading discount and discount allowed?
Discounts may be offered on sales of goods to attract buyers. Discounts may be classified into two types:Trade Discounts: offered at the time of purchase for example when goods are purchased in bulk or to retain loyal customers.Cash Discount: offered to customers as an incentive for timely payment of their liabilities in respect of credit purchases.Trade DiscountTrade discounts are generally ignored for accounting purposes in that they are omitted from accounting records. Therefore, sales, along with any receivables in the case of a credit sale, are recorded net of any trade discounts offered.ExampleBike LTD as part of its sales promotion campaign has offered to sell their bikes at a 10% discount on their listed price of $100. Sale revenue and any accounts receivable will be recorded net of trade discount, i.e. $90 per bike.Cash DiscountCash discounts result in the reduction of sales revenue earned during the period. However, not all customers may qualify for the cash discount. It is therefore necessary to record the initial sale and receivables at the gross amount (after deducting any trade discounts!) and subsequently decreasing the sale revenue and accounts receivable by the amount of discount that is actually allowed. Following double entry is required to record the cash discount:DebitDiscount Allowed (income statement)CreditReceivableDebiting discount allowed ledger has the effect of reducing gross sales revenue by the amount of cash discount allowed. Consequently, receivables are credited to reduce their balance to the amount that is expected to be recovered from them, i.e. net of cash discount.ExampleBike LTD as part of its sales promotion campaign has offered to sell their bikes at a 10% discount on their listed price of $100. If customers pay within 10 days from the date of purchase, they get a further $5 cash discount. Bike LTD sells a bike to XYZ who pays within 10 days. Before we proceed with the accounting entries, it is necessary to first distinguish between the two types of discounts being offered by Bike LTD. The 10% discount is a trade discount and should therefore not appear in Bike LTD's accounting records. The $5 discount is a cash discount and must be dealt with accordingly.The initial sale of the bike will be recorded as follows:$$DebitXYZ (receivable)90CreditSales90As XYZ qualifies for the cash discount, the following double entry will be required to record the discount allowed:$$DebitDiscount Allowed (income statement)5CreditXYZ (receivable)5The above entries have resulted in sales of Bike LTD being reduced to $85 (100-90-5). The receivable from XYZ has also been reduced to this amount effectively. wriiten by nana tweneboah kodua (prisdark academy)
How do you draw a flowchart using case statement?
double discount; // Usually code would be read in char code = 'B' ; switch ( code ) { case 'A': discount = 0.0; break; case 'B': discount = 0.1; break; case 'C': discount = 0.2; break; default: discount = 0.3; } System.out.println ( "discount is: " + discount );
In a game of draughts can a single cap jump a double?
Yes, a single can jump a double in a game of draughts. As long as the jump would be allowed with another single piece, it is also allowed with a double.
