Urgent plz.. reply....

purchase a/c DR. 38000

Packing A/c DR.    2000

       to Sundry Crediotr/ Bank         40000

however you need to reflect the trade discount as the invocie raised will be showing purchase at 71310/-, less trade discount as 33310...

Trade discount is generally given to the customers on bulk
purchase, repeated, purchases, etc. It's shown in the Sales
Invoice. Seller books the income net of discount and the
buyer books the purchase net of discount. In other words,
there is no need to account this discount separately.

However Cash discount is offered bu the seller to the buyers
on early payment & it's related to credit period. Eg, If
paid with in so many days, 2% discount on the invoice
amount, etc. Both the seller and the buyer need to account
the cash discount as expense or income in their respective
books of accounts.

In modern trading business (particularly retail trading),
discount is a regular feature & here the discount is given
at the time of sale itself, it can be treated as trade
discount and there's no need to book the discount
separately. Discount can be shown only in the MIS report for
the purpose of sales analysis and decision making.

In trade discount we do not less trade amt in sale  
voucher .we entered amount direct amt less trade amount.
Ex.     Garment sale               950
         Total Amt                              950
           50Rs is trade discount.
In Cash discount we less cash discount amt in sale voucher. 
Ex.     Garment sale               1000
        cash Discount                                50
           Total Amt                                    950+
In journal there is no entry of trade discount, But in cash 
discount there is an proper entry of cash discount

purchase a/c DR. 38000

Packing A/c DR. 2000

to Sundry Crediotr/ Bank 40000

however you need to reflect the trade discount as the invocie raised will be showing purchase at 71310/-, less trade discount as 33310...

It's Right..

what is mean by "relecting"

however you need to reflect the trade discount as the invocie raised will be showing purchase at 71310/-, less trade discount as 33310...
 

????? i didn't understood could you explain it  

this is mean that the purchase bill should reflect that trade discount is given..

that is purchase value will come first.. then trade discount will be less from that amount and net amount showing in the bill..

2nd you have to mention in the narration that trade discount of Rs......... has been received...

Don't get confuse dear. Trade discount is as simple as this...

You go to a vegetable market and ask the price of a vegetable.. the seller tells you Rs50/Kg.. 

but then you start bargaining and finally reaches at Rs 40/Kg...... and you buy 1Kg @ Rs40/Kg.

Now you tell me.. how much you paid for puchase? Rs 50 or Rs 40/Kg.. Of course Rs 40/Kg..

Isnt'd?

Therefore take this purchase as Rs 40/Kg only and don't think about what that seller was asking for, therefore it (trade discount) is not at all recorded in books of accounts. But for your convenience you can write it down in narration or wherever you want to .. but that would not  have any impact on your books of accounts.

Purcahse A/c - Dr 38000

Packing A/c  -   Dr 2000

       To Creditor A/c - Dr 40000

deepak 

it isn't single item it is a collection of various items with its price that is equal to 71310 discount was not given per product it was given as a total  so how can purchases(items) be recorded at 38000.......

vihari: simply you see that in bill disoc*nt is showing or not as trade discount... if not then it is a cash disoc*nt and should be treat as this.. otherwise no matter to book the trade discount..

Recording of Purchases Made

Purchase Aic Dr.

Packing Exp A/c Dr.

To Sundry Creditor A/c

  At the timeof making  Payment

Sundry Creditor

To Cash/Bank A/c

looking for Industrial training  in  Hyderabad. Can any one help me in this regard?

Plz Urgent............