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Debit purchasesCredit cash / bankno entry for trade discount and in case of cash discount:Debit purchasesCredit cash / bankcredit discount
Dr cash/bank Cr discount received
Debit cash / bankCredit discount allowed
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.
Purchase A/c........Dr To Discount Recievable A/c To Party name A/C
Debit purchasesCredit cash / bankno entry for trade discount and in case of cash discount:Debit purchasesCredit cash / bankcredit discount
[Debit] Cash[Credit] Discount earning
We are purchasing stock rs 3480.00 they give discount rs 170.00 how do we entry the purchase
Dr cash/bank Cr discount received
Debit cash / bankCredit discount allowed
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.
Cash discount is expenses of trading account but this is not an expenses just like a scheame on spot given to the purchaser. So no seprate discount entry need in journal. just reduce discount amount in total value and entry it.
debit cashdebit discount chargescredit notes payable account
Purchase A/c........Dr To Discount Recievable A/c To Party name A/C
Discount a/c Dr 20 Raman Industries Dr 80 To Sales 100 (Sales book & discount given )
cash a/c.......dr amt(after discount) to sales a/c amt(after discount)
There is no internal control, Mistake carryover