Dear senior
Please provide accounting & tax treatment of discount received for target turnover.
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Treatment of Turnover target based Discount
Replies (5)
Quick Summary
Discount Received should be deducted from turnover.
Discount received should be shown under indirect income in profit and loss account.
Discount received a/c dr
to Profit and loss a/c
Sales a/c dr
to Discount received a/c
Discount received should be shown under indirect income in profit and loss account.
Discount received a/c dr
to Profit and loss a/c
Sales a/c dr
to Discount received a/c
If the discount is received on bills already paid for and discount is received in cash then,
cash/bank a/c dr. ....... to discount received a/c(P&L)
If the discount is received on bills still not paid,
then,
Creditors A/c Dr............ to discount received a/c (P&L)
cash/bank a/c dr. ....... to discount received a/c(P&L)
If the discount is received on bills still not paid,
then,
Creditors A/c Dr............ to discount received a/c (P&L)
Thank you both of you
Your welcome
@ saurav sir why discount received on purchase deducted from turnover
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