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)
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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