If purchase value after allowing cash discount( discount received at time of sale) Rs. 180000+GST at then cash discount received Rs. 30000 at time of sale it is required to record in the books? Actual Cost Rs. 210000 after cash Rs. 180000,gst is charged on Rs.180000? what is purchase cost Rs 180000 or 210000?
The correct analysis for cash discount cash discount is an expense for the seller and income for the purchaser so the cost would be the total value. i.e. actual cost - 2,10,000/- , cash discount shown in p&l for seller.
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