Interested to Buy Any Domain ? << Click Here >> for more details...
Please tell me entry for following bill.
Goods 500
Disc- 10% 50
----------------
Bill Amt 450
- 8 Answers
- 8794 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / sandhya
gooda a/c dr. 500/-
to cash a/c 450
to discount a/c 50
| Is This Answer Correct ? | 10 Yes | 1 No |
Answer / s
goods never be debited or credited instead of this we do dr. or cr. to purchase a/c hence the entry is:
purchase a/c dr. 500
to dis. a/c 50
to cash a/c 450
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / amit garde
if goods are purchased then entry should be
by goods a/c ... dr 500
to cash a/c 450
to discount a/c 50
OR
IF goods are sold then entry should be
by cash a/c ... dr 450
by discount a/c... dr 50
to goods a/c 500
| Is This Answer Correct ? | 6 Yes | 2 No |
Answer / santu
goods a/c__________________________ cr 500/-
to cash a/c____________________ dr 450/-
to dis a/c____________________ dr 50/-
__________________________________________________________
500/- 500/-
___________________________________________________________
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / srn
The treatment of discount depends on whether it is a cash discount or a trade discount. Cash discount is never recorded in the books where as trade discount is. Considering that the aforesaid discount is a trade discount then..
Entry upon booking of Invoice:
-------------------------------
Capital Work-In-Progress [BS] a/c Debit 500
Trade Discount a/c [P&L] Credit 50
Vendor Liability a/c [BS] Credit 450
A withholding tax a/c like TDS Liability a/c and WCT Liability a/c might be involved in the above txn. in which case the these a/cs will credited to the extend of withholding.
Entry when the asset is put to use:
-----------------------------------
Fixed Asset a/c [BS] Debit 500
Capital Work-In-Progress a/c [BS] Credit 500
When Payment is made to the vendor:
-----------------------------------
Vendor Liability a/c [BS] Debit 450
Bank/Cash a/c [BS] Credit 500
Notes:
Trade Discount is a discount allowed by the seller to the buyer in case of bulk purchases made by him.
Cash Discount is a reduction in the net amount payable by the buyer when prompt payment is made by the buyer.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / s.mohan
goods a/c 500
to cash a/c 50
to discount a/c 450
| Is This Answer Correct ? | 5 Yes | 19 No |
Why is an ‘Alternate Payee’ used
Sums on Finalization of Accounts give exaple?
how to maintain the books of accounts in the organization
i purchase a printer which expenses it comes my shop is medicines purchase and selling
Explain the meaning of long-term notes payable is or long term liabilities?
How to calculate TDS on Directors Remuneration if director's age is around 35 years and salary is 59000/- per month. please suggest me with complete detail.
3 Answers ACPL, Ratna Natural Stones, Rupahali,
salaries due for the month of march will be recorded in
Explain what are the accounting events that are frequently involved in compound entries?
Pass necessary journal entries for the following. 1.Goods supplied by surjit for rs 15000 were entred in sales book.
Is there any different between Modvat & Cenvat...?
why don't we take cash and bank accounts into realisation a/c
Can any one tell me about Accounting Software, which Accounting software is useful for my studies ?
Audit 
