Cash discount entries
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 October 2012
suppose ram has sold goods to sham on credit or rs 50000 and it is the term of agreement. if sham pays within 20 days of this purchase,he can receive 10% discount.If sham pays within 2 days then treat cash discount in day book of both parties.
Plz give journal entries for both the parties..?
Plz give journal entries for both the parties..?
19 October 2012
in the books of seller
discount allowed..dr
to debtor A/c
in the books of buyer
CREDITOR A/C...DR
TO DISCOUNT RECEIVED A/C
THIS ENTRIES ARE FOR CASH DISCOUNT
BUT THE QUESTION YOU HAVE MENTIONED IS OF TRADE DISCOUNT AND THERE IS NO ENTRY FOR TRADE DISCOUNT
discount allowed..dr
to debtor A/c
in the books of buyer
CREDITOR A/C...DR
TO DISCOUNT RECEIVED A/C
THIS ENTRIES ARE FOR CASH DISCOUNT
BUT THE QUESTION YOU HAVE MENTIONED IS OF TRADE DISCOUNT AND THERE IS NO ENTRY FOR TRADE DISCOUNT
19 October 2012
In the books of Ram:
1)on Sale:
Shyam's A/c ...........dr 50,000
to Sales A/c 50,000
2)on payment recd:
Bank A/c...............dr. 45,000
Discount A/c...........dr. 5,000
to Shyam's A/c 50,000
In the books of Shyam:
1)on purchase:
purchases a/c..........dr. 50,000
to Ram's A/c 50,000
2)on payment made:
Ram's A/c..............dr. 50,000
to Bank A/c 45,000
to Discount a/c 5,000
1)on Sale:
Shyam's A/c ...........dr 50,000
to Sales A/c 50,000
2)on payment recd:
Bank A/c...............dr. 45,000
Discount A/c...........dr. 5,000
to Shyam's A/c 50,000
In the books of Shyam:
1)on purchase:
purchases a/c..........dr. 50,000
to Ram's A/c 50,000
2)on payment made:
Ram's A/c..............dr. 50,000
to Bank A/c 45,000
to Discount a/c 5,000
19 October 2012
Agreed with the above replies
19 October 2012
Agreed with the above experts.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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