Ledgers for Discounts received and alllowed

For discount allowed, we have created a ledger “Discount” under “indirect expenses” in Tally 7.2 I wonder how discount received entry is made in Tally 7.2 Shall I credit the above “discount” ledger and debit the party A/c? Or shall I create a new account “discount received” under “indirect income” and use this ledger for discount received?
Replies (4)
Quick Summary
Discount Allowed should be recorded under Indirect Expenses, while Discount Received should be created as a separate ledger under Indirect Income in Tally. Proper accounting entries help maintain accurate profit and loss reporting.

Sir I am maintained account in Tally ERP9, Actually my creditor given me discount in bills but not pay GST in total gross value for example my creditor bills format as S No. Item Qty Rate Gross Discount Basic Gst Rate CGST SGST Total 1 Pepsi 150 650 97500 -30000 67500 18 6075 6075 79650 Note:- Discount in bills its not a discount, it’s a reimbursement of expenses, What ever expenses like sales promotion, salary for his staff & other exp have made in our books on behalf of my creditors, all the expenses are adjusted with this discount amt. I have passed the purchase entry like Purchase A/c Dr 67500 Cgst A/c Dr 6075 Sgst A/c Dr 6075 Discont Reced Dr 30000 Under Groupe Direct Exp Pepsi A/c Cr 79650 Trade Discount Cr 30000 Under Creditors Total 109650 109650 I have passed entry as above becoze party not pay GST on Gross Purchase, My Question When I passed the above entry Discount Recd. Are showing in Profit & Loss A/c. During one month what ever I am expenses on behalf of my creditor I have claimed in monthly basic Salary Cr 5000 Reimbursement of Exp Telephone Exp Cr 2000 Reimbursement of Exp Sales Promotion Cr 15000 Is Automatically adjsuted with Discount Recd. A/c Trade Discount Dr 22000 So My Trade Discount Balance (Cr.30000 – Dr.22000-Claim) = Balance = 8000/- But Discount Recd. Balance is (Dr-30000- Cr.15000/- Sales promotion ) So Difference between Discount Recd. 15000/- and Trade Discount Balance =8000/- Diff. 7000/- Reimbursement of Exp for salary & Telephone = Rs.7000/- not adjusted with Discount recd. A/c So I request plz. Advice how to pass the entry so my both balance is equal Thanks & Regards Sanjay Kumar Das 9899160737

You have to create discount received account under the head Indirect Incomes.

For Discount Allowed

Debtor a/c...Dr
   To Sale a/c

 

Cash a/c ....Dr
Discount Allowed a/c.... Dr
   To Debtor a/c


For Discount Received

Purchase a/c....Dr
   To Creditor a/c


Creditor a/c...Dr
  To Cash a/c
  To Discount Received a/c

In accounting, Discount Allowed is an expense (debited) given to customers for early payment, while Discount Received is income (credited) earned from suppliers for settling bills promptly.

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