Turn over discount ENRTY PASSING IN TALLY

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Anil S (Querist)
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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)
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28 May 2024 ASK THEM TO ISSUE CREDIT NOTE.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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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