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How cash discount differ from trade discount?
Trade discounts are guranteed discounts a business is getting by purchasing from a seller. Cash discounts are OPTIONAL discounts that a buyer gets if they opt to pay their bill (invoice) earlier then the due date. The seller specifies in the invoice how many days earlier a buyer has to pay their bill to get the cash discount. If a cash discount is taken, it is applied after the trade discounts, but before shipping and handling charges.
What is a sales account?
A sales account is the account that actually records a company's profits. The account is normally taken after all employees are paid and all company expenses are doled out.
Does gross sales include sales tax?
No. The sales tax is posted as a credit to the Sales Tax Payable Account. So, if you had a $100 sale plus $5 sales tax, you would debit cash $105, credit Sales $100 and credit Sales Tax Payable $5 Sales taxes are a collection you make for the State. It is funds entrusted to you by the State to be paid over to them. They are not part of your sales or receipts. (Gross income will be sales less cost of sales. This is before selling, general, administrative, interest and tax expenses are taken out.)
How is discount allowed treated in the trading and profit andloss account?
Discounts are allowed in the trading and loss accounts, because the products are not in brand new condition. This allows an amount of money to be taken off so that the item is discounted.
Why is return inward in debit side of trial balance?
Because when someone returns goods we hv more stock, hence we debit it in the trial balance, note that it is taken away from sales in the p & l just as expenses are debited in the trial balance and taken away in the p & l
How cash discount differ from trade discount?
Trade discounts are guranteed discounts a business is getting by purchasing from a seller. Cash discounts are OPTIONAL discounts that a buyer gets if they opt to pay their bill (invoice) earlier then the due date. The seller specifies in the invoice how many days earlier a buyer has to pay their bill to get the cash discount. If a cash discount is taken, it is applied after the trade discounts, but before shipping and handling charges.
Net sales revenue?
The amount sold after customers' returns, sales discounts, and other allowances are taken away from gross sales. (Companies usually just show the net salesamount on their income statements, omitting returns, allowances, and the like.) Net (sales) revenue = (beg+purchases) - end
What single discount is equivalent to two successive discounts of 10 percent and 15 percent?
23.5% if the discounts are taken successively, 25 % if the discounts are taken at the same time. The latter is the less usual meaning of this question.
What is the difference between a gross sale and a net sale?
Gross sales mean what you are charged as the overall total of your bill and net is all other deductions subtracted with what ever balance is left being your net.Gross sales is defined to be the total invoice value of sales, before deducting customers' discounts, returns, or allowances.Net Sales The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. The sales number reported on a company's financial statements is a net sales number, reflecting these deductions.More information from our contributors:For easier understanding, gross sales is what is accounted for as sales and net sales is what is received on account of the transaction.Taxes; gross sale indicate total amount received before any applicable tax is taken out. Net sale is the total of gross sale minus taxes, before tax payments, royalties, etc. You pay your income tax based on gross. The difference between gross sales and net sales can come from two sources.1. Sales returns 2. Customer discounts or allowancesIn accounting, the difference between gross sales and net sales can be made up of more than one factor. Gross sales revenues is all the sales revenues that have been earned by a firm during a given time period. The items that are netted out of, or deducted from, gross sales in order to arrive at net sales can be different in different industries. For example, in the book publishing industry the two items mentioned above would be deducted from gross sales to get to net sales. In the magazine publishing industry, there would be an additional deduction for advertising agency commissions.In general, however, "gross sales" reduced by the sum of :[(1) the dollar amount of refunds for items bought and then returned by customers and (2) the dollar amount of purchase discounts taken by customers] equals "net sales".Gross sale is the sale that needs some amount to be deducted from it. And net amount is final sale that is in actual figure after deducting all other things like allowances etc.I might suggest that an example would help. e.g. if you sell your house for £300,000, that would be your gross sale. But if you then deduct the cost of selling it (like estate agents fees) of say £30,000 then you get £270,000 which would be your net sale.
Is an Automobile Buyer's Order a legally binding contract in PA if both the dealer and buyer have signed it?
In Pennsylvania, a buyer's order only becomes consummated once the buyer has taken delivery of the vehicle. Not at the signing, but once the vehicle leaves the sellers property.
Is a 15 percent discount the same as 3 successive 5 percent discounts?
No, because successive discounts are taken on the discounted price after the first of the successive discounts. Therefore, 3 successive 5 % discounts will total to a smaller discount than one 15 % discount.
What is the difference between hire hypothecation and hire purchase?
Hire purcase is somthing to similar to instalment purcase through intermideary oa lender the ownershpi passes on it the byer no only after paying all the dues and installment but also when the lender agrees to sell. In Practical Hire Purchase, where only 2 parties are involved, the buyer and seller. Seller sells the goods with proper Invoice with Sales Tax, buyer ask him to charge some interest and give him facility to pay in installments. Property is of seller till contract is over. Hire Purchase finance, where 3 parties are involved, the buyer, the seller and the financier. Seller sells the goods with proper Invoice with Sales Tax, buyer pays whatever possible by him, and ask its financier to pay the balance. The seller is out of picture now. Property is of financier now till the contract is over. The financier recieves its money in installments, and nothing to do with Sales Tax. Hypothecation: Hypothecation is a position where the owner assigns the right of ownership to the lender through still holding the possession. In practical Hypothecation, where 3 parties are involved, the buyer, the seller and the financier. Seller sells the goods with proper Invoice with Sales Tax, buyer pays whatever possible by him, and ask its financier to pay the balance to be treated as "loan" against the property which he is about to acquire. The seller is out of picture now. Property is of buyer now. It is given as security against the loan which buyer has taken from financier.recieves its money in installments, and nothing to do with Sales Tax.
Is it illegal for a dealer to sell a new car with a known defect?
If the defect is explained to the buyer and they still agree to buy then no. Although if they sell the car with a defect unknown to the buyer they can get there dealer licence taken away and sued for endangering the customers life. (assuming the defect is dangerous: Broken Brakes, Slow reacting turns, ect.)
A percentage of money taken in from sales made?
a word in the dictionary
What is the easiest tax to collect because its taken immediately?
Sales Tax
What is the projected sales for a daycare?
The projected sales of a daycare depends on a few things. This largely depends on the number of kids taken care of.
If a person is buying property but has not yet paid for it can he remove anything off of the property legally in pa?
No. The buyer does not own the property until the seller has executed the deed to transfer title to the buyer and the deed has been recorded in the land records. The buyer has no rights in the property until they have taken title.
