Answer / radhu

discount received is a gain of a party so it will be
credit and discount paid is a loss so it will be debited.
entry:-
discount received:-
cash a/c dr.***
to party's a/c ***
to discount received a/c ***
(being discount received)

discount paid:-

pary's a/c dr. ***
discount allowed a/c dr. ***
To party's a/c ***

(being discount allowed)

Answer / h.r. sreepada bhagi

As mentioned above Discount received is income & discount
allowed is an expense.

Entries depends up on substance and timing of recognition of
the income or expense. Assuming that Discounts received or
allowed are cash discounts and not trade discounts the
entries are (Eg. Rs. 1000/- is the discount received or
allowed) :-

For Discount Received:-
On recognition of Income before settlement by cash/bank
Creditor's (Vendor) A/c Debit - Rs.1000/-
Discount Received A/c Credit - Rs.1000/-

Generally, the amount will be deducted from the payables and
no separate entry for receipt will be there. However if the
bill amount has been fully paid earlier and the payee has
reimbursed the discount amount in cash or by cheque, the
entry will be :-

Bank/Cash A/c Debit - Rs.1000/-
Creditor's (Vendor) A/c Credit - Rs.1000/-

In case the discount income is recognised on receipt by
cash/Cheque/DD/Credit to a/c, as it was not known or not
recognised earlier for any reason, then the entry will be :-

Bank/Cash A/c Debit - Rs.1000/-
Discount Received A/c Credit - Rs.1000/-

For Discount Allowed:-
On recognition before settlement by cash/Cheque/DD, etc.
Discount Allowed A/c Debit - Rs.1000/-
Debtor's (Customer) A/c Credit - Rs.1000/-

As above, generally, the amount willb e deducted by teh
customer from the bills & hence seperate bank or cash entry
will not be required. However if the bill amount has been
fully received earlier and the company has reimbursed the
discount amount in cash or by cheque/DD, the entry will be :-
Debtor's (Customer) A/c Debit - Rs.1000/-
Bank/Cash A/c Credit - Rs.1000/-

In case the discount expense is recognised on payment by
cash/Cheque/DD/transfer from a/c, as it was not known or not
recognised earlier for any reason, then the entry will be :-
Discount Allowed A/c Debit - Rs.1000/-
Bank/Cash A/c Credit - Rs.1000/-

Different accounting treatment shall be made for trade
discounts. Specific entry depends up on the circumstance,
materiality and substance of the transaction. When these are
accounted while settling the bill, then a consolidated
transaction entry can be made and the income or expense be
accounted along with giving effect to Cash/Bank &
Creditor/Debtor.

Answer / pradeep kumar

WHEN DISCOUNT RECIEVED
BANK/CASH A/C DR.
DISCOUNT A/C DR.
TO PARTY A/C


DISCOUNT PAID

PARTY A/C DR.
TO CASH/BANK
TO DISCOUNT A/C

What is impairment of assets?

1 Answers   CA,

---

What are the differences between accounting and auditing?

0 Answers  

---

Different types of payments

1 Answers   Accenture,

---

meaning of capital

2 Answers  

---

a person have to buy 2kg items out of 4 differnt price tag item i.e potatoo rs. 10 kg, onion rs. 5 kg , radish rs. 1 kg, and chilli rs. 1 kg in rs 10 how can he do

0 Answers  

---

is WCT aplicable on educational institutions also??????

0 Answers  

---

Mutual Funds

2 Answers   Bank Of America,

---

Is petty cash book is compulsory in all companies?

1 Answers   ACS,

---

Explain the Parameters required in the Setup of Financial Option and Payable Option

0 Answers   Accenture,

---

Steps to Define Payment Batches

0 Answers   Accenture,

---

Why loss shown in as Assets in Balance Sheet?

3 Answers  

---

If the employee has no any experience and he not achieved or he not did any specified work in his student life while he looking job if interviewer ask about any thing about his acchivement what he have to say

2 Answers   Infosys,

---