Turn over discount ENRTY PASSING IN TALLY

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This discussion explains how to record a turnover discount of ₹15,00,000 received from a vendor in Tally. The entry involves debiting the vendor's account and crediting a 'Discount Received' or 'Purchase' account. The vendor has adjusted this amount against the total balance payable. Instructions are provided for creating the journal voucher in Tally.

Anil S

Anil S (Querist)

28 May 2024 we have received turnover discount from our vendor of Rs 15,00,000/- and they have adjusted the amount in total balance payable, how should we pass this entry in our ledger

Gokul Sharma

Gokul Sharma (Expert)

28 May 2024 ASK THEM TO ISSUE CREDIT NOTE.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

02 August 2025 Got it! You received a **turnover discount** of ₹15,00,000 from your vendor, and they adjusted it against your payable balance.

Here’s how to pass the **accounting entry** in Tally (or any accounting software):

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### Journal Entry for Turnover Discount Adjusted Against Payables:

| **Account** | **Debit (₹)** | **Credit (₹)** |
| ------------------------------------------------------------- | ------------- | -------------- |
| **Sundry Creditor (Vendor)** | 15,00,000 | |
| **Purchase/Discount Received (or Turnover Discount Account)** | | 15,00,000 |

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### Explanation:

* **Debit Vendor Account** — reduces your outstanding payable to vendor.
* **Credit Discount Received Account** — recognizes the discount as income (or reduction in purchase cost).

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### In Tally:

1. Go to **Accounting Voucher** (F7 – Journal Voucher).
2. Debit the **Vendor ledger** by ₹15,00,000.
3. Credit **Discount Received** ledger (you can create this under Indirect Income) by ₹15,00,000.
4. Narration: "Turnover discount received from vendor adjusted against payable."

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If you treat discount as **reduction in purchase**, you can credit the **Purchase Account** directly (instead of Discount Received).

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Would you like me to help you create the ledger accounts in Tally as well?

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