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What is general entry credit purchase with discount?
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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 |
i wana give an interview as sr. excise officer what r the question will asked by interviewer ??? Please suggest me so I can clear inteview.thank u
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