Net Receivables in Balance Sheet

Taxes will be on sales and purchases, and not on receivables.If receivables are 10,000, then net receivables will be 

Receivables a/c 9000

Provision @ 5% a/c 500

Discount allowed a/c 500

To Sales a/c 10000

As far as I can remember, tax is included in sales entry. That will be automatically carried to GST. We don’t pass tax TDS receivable entry because sales voucher already included that tax amount and passed to receivables. For example sales 9000, and output taxes receivable=1000 and hence total sales= 10,000.

Similarly, discount is allowed after taxes and before taxes. It is recorded on per sale basis. So no need to include it in the above entry.

@ Sabyasachi

 Let me guess, one can write it off well. Thanks