purchased one capital item 4 years back and capitalised in books for 100% value. payment is in 5 yers EMI. now supplier is giving Rs40.00 lacks discount. cost is Rs.2.00 crores. how to treat this 40.00 lacks.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 20 June 2011
yes discount will be treated as income
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 June 2011
Since it is not given in first year in my view it will not be reduced from the book value but will be credited to P& L a/c.
Correct me if i am wrong.
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 20 June 2011
it's a income i.e., discount received transferred to p & l a/c.
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