HOW TO TREAT DISCOUNT RECEIVED FROM SELLER

PURACHASE VEHICLE FROM TATA INVOICE VALUE 46,38,300/-

INSURANCE FROM SELLER 88,854/-

RTO PENDING

DISCOUNT GIVEN DEBITED TO BANK ACCOUNT 5,96,000/-

 VEHICLE FINANCED BY X BANK 45,79,000/-

PLEASE PROVIDE JOURNALS FOR ABOVE TRANSACTION SEQUENTIALLY

Replies (6)
Quick Summary
This discussion explores the proper accounting treatment for a discount received when purchasing a vehicle. The original query details a transaction involving a vehicle purchase, insurance, RTO costs, and a significant discount debited to the bank account. Participants are seeking clarification on the correct journal entries and the rationale behind how discounts are recorded.

Query is slightly confusing...
Please give correct values...
Discount cannot be debited to bakk account
Originally posted by : sabyasachi mukherjee
opening quote Discount cannot be debited to bakk account closing quote

Why not, Any reason...???

cash discount provided

correct values sir

 

Please connect with me on raj @ rcdco.in w.r.t accounting for purchase of vehicle

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