Entry for goods sold at discount

goods sold at discount/or at cost price  because the goods are display goods what is the accounting treatment for it

does it is recorded or not ?? 

Replies (4)
Quick Summary
This discussion clarifies the accounting treatment for goods sold at a discount or cost price, such as display items. The consensus is that these sales should be recorded just like any other sale, with appropriate entries for trade debtors, sales, and GST. The key point is that discounts should be recorded in the books of accounts, provided they are not trade discounts, and Section 15(3) of the CGST Act must be considered.

Same is recorded under sales just like other sales.
Trade Debtors A/c Dr
To Sales. A/c Cr
To CGST. A/c Cr
To SGST. A/c Cr
(Sales booking entry)

Bank A/c Dr
Discount A/c Dr
To Trade Debtors A/c Cr
( Discount entry)

does this discount is recorded or not  and is this trade discount 

Yes , you have to record discount in the books of accounts, if it is not Trade discount. Also you have  apply section 15(3)  of the CGST Act  in case of discount .

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register