Volume discount

Hi,

Volume discount is to be accounted as an Income.

Where as the discount which is yet to be received has to be provided as income in the relevent FY, and to be shown under current asset in the balance sheet.

Accounting Entries will be:

For Volume discount Received:

Dr sundry Creditor/Party      xxxx 

Cr Volume discount (Indirect Incomes)   xxxx

For Volume Discount Receivable:

Dr Volume discount Receivable (Current Assets)     xxxx

Cr Volume discount (Indirect Incomes)                                xxxx