Turn over discount ENRTY PASSING IN TALLY
This query is : Resolved
Quick Summary
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
28 May 2024
ASK THEM TO ISSUE CREDIT NOTE.
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):
---
### 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 |
---
### Explanation:
* **Debit Vendor Account** — reduces your outstanding payable to vendor.
* **Credit Discount Received Account** — recognizes the discount as income (or reduction in purchase cost).
---
### 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."
---
If you treat discount as **reduction in purchase**, you can credit the **Purchase Account** directly (instead of Discount Received).
---
Would you like me to help you create the ledger accounts in Tally as well?
Here’s how to pass the **accounting entry** in Tally (or any accounting software):
---
### 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 |
---
### Explanation:
* **Debit Vendor Account** — reduces your outstanding payable to vendor.
* **Credit Discount Received Account** — recognizes the discount as income (or reduction in purchase cost).
---
### 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."
---
If you treat discount as **reduction in purchase**, you can credit the **Purchase Account** directly (instead of Discount Received).
---
Would you like me to help you create the ledger accounts in Tally as well?
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