Interested to Buy Any Domain ? << Click Here >> for more details...
What is general entry credit purchase with discount?
- 9 Answers
- 17145 Views
- Intelent, I also Faced
- E-Mail Answers
Answer Posted / 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 |
Post New Answer View All Answers
Tell me did you use accounting applications at your previous companies or prefer working manually?
Imagine you have to solve problems for multiple clients at the same time. How do you prioritize?
Plant and machinery destroyed for 50000
Under Accrual Accounting, How Are Worker Comp Premiums Handled?
Tell me the types of accounts involved in double entry book-keeping?
what is balance sheet, capital budgeting, financial statements, current ratio, profit maximization?
What is mean by Asset area?
What would be the entry at the time of Generating Tution Fee Challan for Advance fees. (e.g In the Month of April, Fees of June and July in being asked to pay by school to their students?,
What is the revenue recognition principle?
Did you use accounting applications at your previous companies or prefer working manually??
when & how interest on unsecured loan is calculated?
What is the acceptable accounting procedure when an error is detected in a general ledger account? Explain why such a procedure is followed?
Define public accounting?
Does anybody know anything about BirlaSoft? I got a job offer, they sent me a contract to sign and return, but thank God they didn't ask for any money! But, they said they would send me a check in the mail. And as my first "task" I would have to use that check to order a bunch of accounting software, and I would need to purchase this software ONLY from the vendors that THEY provide. Is this a scam to just get money? I'm wondering if they "own" the vendor they "work" with and launder money that way. I asked the person who was getting my information, as far as my name and address to send the check to, Why would I have to buy software to install in my home computer anyway? Couldn't they just send me a link for the software to download? I'm afraid of the check being fake. Because, if I deposit the check into my checking account and it turns out to be fake, then I'll owe the bank all that money! Hope to hear from someone soon. Thanks.
is there is mentioned that we can adjust excess debtors with creditor in the stock statement while calculating Drawing Power
