Shall Trade discount be recorded in Entries of Sales and if it is wrong what are its consequences
Menu
QUERY
Replies (4)
Trade Disounts should not be entered in books and Sales after such discoutn should only be entered . Entering trade disount will distort the value of sales
Goods must me recorded only at cost. Cost is the amount that is paid to acquire goods.
For example.
Selling price of goods Rs. 100
Trade Discount 20%
Amount paid Rs. 80.
Since Rs. 80 paid to acquire goods, hence, goods are to be recorded at Rs. 80 in the books.
Thats why Trade Discount is not recorded in Books.
From the point of view of sales.
Trade discount is not recorded and entry is made with the amount realised.
I am agree with
Recent Topic
- Delayed reported invoice in GSTR1
- Kusumgar IPO Listing Date: Shares Debut on BSE, NS
- When is Diwali in 2026? Date, Muhurat Timing and D
- Amount received by son from PPF closure proceeds o
- Clarification on Nature of Payment Code for NRI Pr
- Fee received as Independent Director
- Correct way to show income from annuity in ITR
- ITR 3 issues
- What after death of proprietor
- TDS paid under old regime instead of new
Related Topics
CAclubindia
