Regarding accounting treatment for discount received

1604 views 2 replies

Hai,

 

Can anybody give the accounting entry for the following example:

 

We have purhased goods from delhi local registered dealer and they have been charged amount as Rs. 100/- and vat 4% of Rs. 4/-, total amount of Rs. 104/- later he was given a discount of Rs. 6/-, then invoice amount of Rs. 98/-.

Now, i have taking input tax as it is local purchase and how much amount to be shown against purchase of goods and its treatment.

Thanking in advance. 

Regards

Ashok

Replies (2)

follow the credit note issued by seller, 

if not provided then ask for credit note for this discounted amount. 

its 98*100/104 = 94.23 (Basic Value)

98*4/104 = 3.77 (Tax Amount)

 

Regards

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