sir I am composition person and my accountant always showing purchase return in discount entry purchase discount according to me this is wrong entry bcoz its going on purchase side (-) I always ask this matter but he can't gives satisfy answer he said to me your tournover will going high plzz salove this perfect way
If your business profitability is calculate on GP ratio , then he is Correct the Discount will be book in income & Your income will get increased,. But ... if the Cnt is for discount the purchase cannot be decrease , has to book in income
CAclubindia
