Interested to Buy Any Domain ? << Click Here >> for more details...
What is the entry for Discount Received? & What is the
entry for discount paid?
- 13 Answers
- 65915 Views
- Azizi Bank, i4 Mobiles, WNS, I also Faced
- E-Mail Answers
Answer Posted / radhu
discount received is a gain of a party so it will be
credit and discount paid is a loss so it will be debited.
entry:-
discount received:-
cash a/c dr.***
to party's a/c ***
to discount received a/c ***
(being discount received)
discount paid:-
pary's a/c dr. ***
discount allowed a/c dr. ***
To party's a/c ***
(being discount allowed)
| Is This Answer Correct ? | 6 Yes | 7 No |
Post New Answer View All Answers
Case Study: Deepak Hand tools Private Limited DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
Explain in simple terms what is the difference between asset, equity, and liabilities?
What is dd and a in oil and gas accounting?
how can i settle the party ac with cr & dr
Explain things that fall under intangible asset?
Explain what does the standard journal entry includes?
What is customer account?
what is the deference between depreciation explanation
What are the functions of manger -accounts and manager-finance? Explain in detail
Where the financial accounting fails the cost accounting for is rescue but still there are some limitations deficiencies in the system?
What is accounting
How Advances to suppliers for purchase of raw materials is to be considered while calculating Drawing Power
contents of an invoice receipt? difference b/w statutory audit & internal audit? Where the bank book and the cash book will not reconcile? difference b/w income & expenditure a/c & p/l a/c? what is ERP? what is full form & the application of SAP? Why income statement prepared? What are the reasons where Balance sheet will not tally? How do you calculated Closing stock in the trading a/c? When will the cash book have a Credit balance? Why do you prepare p/l appropriation a/c? What are the 4 difference b/w public and private company? What do you mean by Contingent liability? Explain: Accrual Concept 1. Realisation concept? 2. Accounting concept?
What are the different branches of accounting?
What is meaning of invoice?
