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Yes, that's correct! If the supplier offers a 1% discount for early payment, you can calculate the discount amount as follows:
Outstanding amount (Rs. 275000) x Discount percentage (1%) = Rs. 2750 So, the discount amount is Rs. 2750.
You can raise a debit note (DN) for this amount without GST, as it's a discount on the outstanding amount.
Here's the entry: Debit Note (DN): - Debit: Supplier's Account (Rs. 2750) - Credit: Discount Received (Rs. 2750)
This will reduce the outstanding amount to
Rs. 272500 (Rs. 275000 - Rs. 2750).
Remember to verify the calculation and ensure the discount is properly documented and agreed upon with the supplier.
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