Quantity discount

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Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2015 i am newly bcom graduate engaged in a company having a policy of providing qty discount
"buying 2 products they are offering 1 free"

and

"buying 12 packets they are offering get 3 free"

as per accounting point of view. i am not able to sort it out. how to make accounting treatment

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)

13 February 2015 Dear sir ,
The quantity discount is being given for alluring the customers .....you can treat it as advertisement .... and deduct the cost of the free packets.... from purchase of stock and show it as advertisement
charges ....

Rupesh Jain

Rupesh Jain (Expert)

14 February 2015 you can calculate the free items and book under the trade discount and reduce the qty from the stock.

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2015 hello Dear Experts,

I am little confused regarding this and i could not understand what should i actually do.... if i make treatment of Trade Discount then "Trade Discount" should come under ________________ Head...

Muje to dono treatment theek Lagg rhe hai... but which treatment should be followed in Gud Accounting practice..Kindly Advise

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)

15 February 2015 Dear sir ,
Trade discount never come in the books of a/c.....so there will be no account head for that .......

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