Interested to Buy Any Domain ? << Click Here >> for more details...
On goods purchases of Rs.2,00,000 got trade discount of
20,000 from supplier, and the amounts paid to supplier is
1,00,000 in cash and RS.1,00,000 in check on the same day,
what would be the general ledger entry ?
- 18 Answers
- 20500 Views
- Genpact, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / sujit adak
Purchase A/C .........dr 200000
To cash .........................80000
To Bank..........................100000
To Discount received.............20000
| Is This Answer Correct ? | 33 Yes | 10 No |
Answer / h.r. sreepada bhagi
Since Rs. 20000/- trade discount is given and payment made
to the supplier is Rs. 2 Lac. (Cash 1Lac.+Cheque 1Lac.)
From this we can imply that the original value of the goods
was Rs. 2.20 Lac., & has been supplied for Rs. 2 Lac. after
trade discount of Rs. 20000/-.
Trade discount need not be accounted separately. (Only cCash
discount received/given needs to be accounted separately as
income/expense, as the case may be.
In this case On Purchase, debit Purchases A/c with Rs. 2
Lac., & Credit the Supplier.
On payment, debit the supplier with Rs. 2 Lacs. & Credit
Cash & Bank A/cs with Rs. 1 Lac., each.
| Is This Answer Correct ? | 23 Yes | 1 No |
Answer / mohamed ashir
Trade Discount Will not come in the books account ,but cash
discount will come in the books of accounts .
so here is trade discount...........
Purchse a/c dr 200000
To Cash 100000
To Bank 100000
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / gouthami
there is no entry for trade discount, only cash discounts
are taken into consideration.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / murli vohra
People Giving the answer above are forgetting one thing that Trade Discount is not to be shown in book of accounts
Entry will be
Purchase Dr-180000
Supplier -Dr20000(bal figure)
To cash 100000
To Bank 100000
| Is This Answer Correct ? | 4 Yes | 3 No |
Answer / ramesh.ch
1.trade discount which is allowed to customers to increase
the sales
2.trade discount will not effect the expected profit
3. trade discount should not will effect the books of
account
purchase A/c........Dr 1,80,000
To cashA/c 80,000
To bankA/c 1,00,000
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / bhavani
Purchases A/c Dr 2,00,000.00
To Cash A/c 80,000.00
To Discount A/c 20,000.00
To Bank A/c 1,00,000.00
| Is This Answer Correct ? | 9 Yes | 9 No |
Answer / gangadhar
Purchase A/c Dr. 200000
Supplier A/c Dr. 20000
to cash A/c 100000
to bank A/c 100000
to discount received A/c 20000
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / govardhan prasad.g.
Purchases A/c DR 2,00,000
TO CASH A/C 1,00,000
TO BANK A/C 1,00,000
For this transaction we are considering trade disc of
20,000 from suppliers,bec trade disc is not enteried in
Trading and P&L account.(i.e., total value of goods is
2,20,000 in that trade disc is 20,000 given by supplier and
remaining 2,00,000 given by the purchaser.)
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / mohd rashid
NO NEED TO ACCOUNTING OF TRADE DISCOUNT. THEREFORE ENTRY WILL BE
PURCHASE A/C DR 200000
TO CASH A/C 100000
TO BANK A/C 100000
| Is This Answer Correct ? | 0 Yes | 0 No |
Do you think accounting standards are mandatory and why?
instead of clicking backup,i selected restore in tally7.2 and all my data is lost and i also forgot the comapny name,which i wanted to restore?how to recover my data?
hi...this is chaitanya fresh bcom computer graduate i need job in finance feild will i get in genpact, deloitte, bank of america, or any other mnc...?
consultancy charges receivable Rs 30000 from abc & co. tds receivable 3000
define contra entry?
How do you prepare mis reports?
What is the TDS rate for Salary???????
how to we pass a purchase entry in item invoice mode where some advance has been paid to the party. the purchase entry should get offset with the advance payment entry so that it does not appear in the bill outstanding or bills due list. please guide.thank you
what is credit card and what is debit card
Journal entry for Telephone purchased in credit?
If We Paid 15000/- For Advertising Exp To XYZ Co,What IS The Entry And In which Ledger It Entered? Is It Necessanry To Make 2nd Entry? Plz Discribe All.
how to prepare trial balance?
Audit 
