Nature of Discount

This query is : Resolved

zamir (Querist)
Follow

05 December 2009 Dear Expert,
the company is getting price protection say 1 week, i.e The company will purchase as per price list and if price falls in market within 1 week then company will get the above discount.
I want to know the accounting treatment of discount and nature of above discount, whether it is a cash discount or trade discount.

Thanking You
Z A M I R

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
Follow

07 December 2009 The nature of the 'price protection discount' is trade discount since the motive of the said discount to encourage the trading.

As far as the treatment of accounting is concerned you have to pass the entry by giving suitable heading in Trading Account under "Goods Purchase" group.

Regards

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

NISHANT SIPANI

Amit Bhatkar

MAHESHA RAMANNA

J.Vijai

vinod

Subscribe Now

Nature of Discount

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANCY

GST CONSULTANT

Article Assistant

CA Final