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discount entries in tally

aditya (employee) (30 Points)

23 November 2010

assume that i have a coaching institute.

i created an account named "student acc" under sundry creditors

at the time of admission the "student acc" is debited with the fees the student as to pay.

but in some cases i have to give a discount to the student later on.

i dont want to edit my fees from say 10000 to 8000 to give 2000 as discount

i want to maintain my original fees and also the amount of discount i have given over a period

so can i do that by creating a dicsount ledger under indirect expenses?

if so how will the account entries be??

please help.

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9 Replies

Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 23 November 2010

Dear Aditya,

This May Help You....

CA Riswa Parekh (Practicing) (1591 Points)
Replied 29 November 2010

Accounting Entry will be: At the time of admiision you will debit the student A/c.

And at the time of Receipt : Cash/Bank A/c. Dr. 8,000

Discount A/c. Dr 2,000

Student A/c. Cr.10,000

Open Discount A/c. under the head Direct Expense

aditya (employee) (30 Points)
Replied 30 November 2010

thanks for the reply.

but suppose i want to give discount after receipt has been done

my original fees will have service tax calculated on it

eg. original fees is rs 100 with 10.3% STAX = Rs. 103

then in that case how will the entries be if i want to give discount after receipt?

V P Narasimhan (Accounts Manager) (791 Points)
Replied 05 December 2010

Dear

I suggest you better open an account as discount undr indirect expenses so that a journal entry can be passed as and when a discount has been extended. The main advantage is you can ascertain the actual discount extended at the end of the aprticular period. I fyou have more than one account in income area you can allot cost centrer to drive how much discount extended to each dept.

vinod bhandari (PRACTICE) (131 Points)
Replied 05 December 2010

Opening Entry

Cash/bank A/c Rs 10000

To Student A/c Rs 10000

Discount Entry

Discount A/c Dr Rs2000

To Cash/Bank A/c Rs 2000

Mitali Agarwal (Company Secretary) (638 Points)
Replied 06 December 2010

Originally posted by : vinod bhandari
	Opening Entry Cash/bank A/c Rs 10000 To Student A/c Rs 10000 Discount Entry Discount A/c Dr Rs2000 To Cash/Bank A/c Rs 2000

Since discount is a non-cash expense, this entry is not correct.

I agree with Mr. Narasimhan that Discount Account should be opened under the head "Indirect Expense" and then through a Journal Voucher an entry of discount may be passed as and when discount is given to the student (standing as creditor in the books).

(Guest)

Originally posted by : V P Narasimhan
	Dear I suggest you better open an account as discount undr indirect expenses so that a journal entry can be passed as and when a discount has been extended. The main advantage is you can ascertain the actual discount extended at the end of the aprticular period. I fyou have more than one account in income area you can allot cost centrer to drive how much discount extended to each dept.

Hows it possible sir many student are prepare ca and he/she are reply are to different answer

this post is allready see on dec-1 but i not agree with riswa

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 07 December 2010

Originally posted by : aditya
	assume that i have a coaching institute. i created an account named "student acc" under sundry creditors at the time of admission the "student acc" is debited with the fees the student as to pay. but in some cases i have to give a discount to the student later on. i dont want to edit my fees from say 10000 to 8000 to give 2000 as discount i want to maintain my original fees and also the amount of discount i have given over a period so can i do that by creating a dicsount ledger under indirect expenses? if so how will the account entries be?? please help.

leave the account as it goes on and on close of year or actual payment day , debit the diff to discount or incentive account to close the "student ledger"

Ragupathy (student) (42 Points)
Replied 30 August 2011

guys, i got a situation here, tat when the discount is given in percentage how to post entry based on only percentage and not the amount... is there any way to do tat in tally by giving only the rate of percentage...........