What is general entry credit purchase with discount?
- 9 Answers
- 14900 Views
- Intelent, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / vijay kumar
purchases A/c Dr. 5000/-
To Credit to party 4000/-
To Discount, 1000/-
discount head create in Indirect Income head,
| Is This Answer Correct ? | 37 Yes | 3 No |
Answer / surekha
the first entry is wrong .
discount normally offered by creditor as part of the po
terms so an entry is required for recognising the discount
so entry 2 is ok
purchases A/c Dr. 5000/-
To Credit to party 4000/-
To Discount, 1000/-
discount head create in Indirect Income head,
| Is This Answer Correct ? | 11 Yes | 2 No |
Answer / h.r. sreepada bhagi
It's important to know when the discount is given. Various
entries given below with example Original Price, Rs, 10000/-
& discount 10%.
1. When discount is mentioned in the Sales Invoice, there is
no need to recognise it separately as income (Discount
Received) as it is Trade Discount. The purchase entry is:-
Purchase A/c Dr. Rs.9000/-
Supplier's (Creditor) A/c Cr. Rs.9000/-
*** If it's an asset, Asset A/c shall be debited instead of
Purchases A/c.
However, if the discount of Rs. 1000/- is given at the time
of payment, then it's recognised as an Income, as it's
treated as Cash Discount. The purchase entry is:-
Purchase A/c Dr. Rs.10000/-
Supplier's (Creditor) A/c Cr. Rs.10000/-
The payment entry for settlement of credit purchase is :-
Supplier's (Creditor) A/c Dr. Rs.10000/-
Bank/Cash A/c Cr. Rs.9000/-
Discount Received A/c Cr. Rs.1000/-
Alternatively the supplier can be debited with Rs. 9000/-
through purchase entry & discount can be accounted by
debiting the supplier and crediting the Income A/c with Rs.
1000/-
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / babita sharma
Purchase A/c Dr. 5000
To Party name Cr. 4000
To Discount Received Cr. 1000
Discount head creat indirect income head.
| Is This Answer Correct ? | 4 Yes | 2 No |
Answer / mohd. irfan
Purchase A/c Dr. xxx
TO Party name. cr.xxx
To Discount Received Cr.xxx
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / barodianbuddy(acca)
PURCHASE DR XX
DISCOUNT RECEIVED CR XX
PAYABLE S CR XX
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / kaushal
Purchase A/c Dr.
To Creditor A/c
There are no discount entry made on credit purchases.
Because discount allowed only on cash transactions
| Is This Answer Correct ? | 3 Yes | 13 No |
Please explain the difference between provision and reserve?
Period I :- Sales= Rs 15000. Profit= Rs 400. Period II :- Sales= Rs 19000. Profit= Rs 1150. Calculate : a) P/V ratio. b) Profit when sales are Rs 12000. Cc) Sales required to earn a profit of Rs 2000. d) Margin of safety in period II. e) variable cost in period I.
we had company we provide work others they deducted tds how to pass entries in my company please tell me
how to posting tally esi employer contribution and pf employer contibution not included in salary
what is capital revenue and capital expenditure?
What can be done incase of excess payment of TDS Remittence than the actual amount? Is there any adjustment towards the excess amount with the upcoming TDS payment? Reference of last quarter challan should be shown while adjusting in next quarter?
What is the difference between ledger and journal?
WHERE WE CAN USE VAT 5%,14.5%
0 Answers Airier, Automobile, Chartered Accountant, Puzzolana,
all ques. related to accounts?
please send me banking question on my email ID as I have been selected for state bank of india .my email ID is sawant.supriya51@gmail.com
what are the voucher entries in tally for medical insurance
If assume we paid 50/- as an advance for worth or 100/- goods, but our supplier sent only up to 25/- worth of goods. Know my question is that we want to close the transaction now and how it possible? What about vat like tax setups in ap and ar? What about the sweep command in ap?
Audit 
