Discount received in tally
This query is : Resolved
12 June 2021
why personal account debited
give example
give example
06 July 2024
In Tally ERP 9, when recording a discount received transaction, it's important to understand how Tally categorizes different types of accounts:
### Understanding Tally's Account Types:
1. **Personal Accounts**: These are accounts representing individuals or entities with whom the company has financial transactions, such as suppliers, customers, or creditors.
2. **Real Accounts**: These are accounts that represent tangible assets like cash, bank, inventory, etc.
3. **Nominal Accounts**: These are accounts representing expenses, incomes, gains, and losses.
### Example of Discount Received Entry in Tally:
Let's say your company received a discount from a supplier on a purchase. Here’s how you would record this transaction in Tally:
**Assumptions:**
- Supplier's name: ABC Suppliers
- Original Purchase Amount: ₹10,000
- Discount Received: ₹500
**Step-by-Step Entry in Tally:**
1. **Create the Discount Received Ledger (if not already created):**
- Go to **Gateway of Tally > Accounts Info > Ledgers > Create**.
- Name: Discount Received
- Under: Indirect Expenses (Nominal Account)
- Save the ledger.
2. **Record the Transaction:**
- Go to **Gateway of Tally > Accounting Vouchers > F7: Journal** (since discounts are usually recorded through a journal voucher in Tally).
3. **Enter the Journal Voucher Details:**
- **Debit** the Supplier’s Ledger Account (e.g., ABC Suppliers) for the discounted amount.
```
ABC Suppliers Dr. ₹9,500
```
(Assuming the original purchase amount was ₹10,000 and you received a ₹500 discount, so you debit the supplier for ₹9,500, which is the net amount paid.)
- **Credit** the Discount Received Account for the discount amount.
```
Discount Received Cr. ₹500
```
(This credits the discount received account with ₹500, which is the amount of discount received.)
4. **Save** the voucher.
### Why Personal Account is Debited:
In the above entry, the personal account (Supplier's account - ABC Suppliers) is debited because the transaction involves reducing the amount owed to the supplier due to the discount received. The nominal account (Discount Received) is credited to record the income received in the form of a discount.
This method ensures that the financial impact of the discount received is correctly recorded in Tally, adhering to standard accounting principles where discounts received are treated as income and recorded in a nominal account.
### Understanding Tally's Account Types:
1. **Personal Accounts**: These are accounts representing individuals or entities with whom the company has financial transactions, such as suppliers, customers, or creditors.
2. **Real Accounts**: These are accounts that represent tangible assets like cash, bank, inventory, etc.
3. **Nominal Accounts**: These are accounts representing expenses, incomes, gains, and losses.
### Example of Discount Received Entry in Tally:
Let's say your company received a discount from a supplier on a purchase. Here’s how you would record this transaction in Tally:
**Assumptions:**
- Supplier's name: ABC Suppliers
- Original Purchase Amount: ₹10,000
- Discount Received: ₹500
**Step-by-Step Entry in Tally:**
1. **Create the Discount Received Ledger (if not already created):**
- Go to **Gateway of Tally > Accounts Info > Ledgers > Create**.
- Name: Discount Received
- Under: Indirect Expenses (Nominal Account)
- Save the ledger.
2. **Record the Transaction:**
- Go to **Gateway of Tally > Accounting Vouchers > F7: Journal** (since discounts are usually recorded through a journal voucher in Tally).
3. **Enter the Journal Voucher Details:**
- **Debit** the Supplier’s Ledger Account (e.g., ABC Suppliers) for the discounted amount.
```
ABC Suppliers Dr. ₹9,500
```
(Assuming the original purchase amount was ₹10,000 and you received a ₹500 discount, so you debit the supplier for ₹9,500, which is the net amount paid.)
- **Credit** the Discount Received Account for the discount amount.
```
Discount Received Cr. ₹500
```
(This credits the discount received account with ₹500, which is the amount of discount received.)
4. **Save** the voucher.
### Why Personal Account is Debited:
In the above entry, the personal account (Supplier's account - ABC Suppliers) is debited because the transaction involves reducing the amount owed to the supplier due to the discount received. The nominal account (Discount Received) is credited to record the income received in the form of a discount.
This method ensures that the financial impact of the discount received is correctly recorded in Tally, adhering to standard accounting principles where discounts received are treated as income and recorded in a nominal account.
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