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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Regarding TDS Applicability For Director Remuneration
- SFT Cash Deposit in Current Account
- Annual return in Gst
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
