Please tell me entry for following bill. Goods 500 Disc- 10% 50 --

Categories >> Accounting >> Accounting General
Suggest New Category

Please tell me entry for following bill.
Goods 500
Disc- 10% 50
----------------
Bill Amt 450

Question Posted / skiran

8 Answers
9128 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

Please tell me entry for following bill. Goods 500 Disc- 10% 50 ---------------- Bill..

Answer / ahsan

Goods A/c 500
Cash A/c 450
Discount a/c 50

Is This Answer Correct ?

20 Yes

4 No

Please tell me entry for following bill. Goods 500 Disc- 10% 50 ---------------- Bill..

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

Please tell me entry for following bill. Goods 500 Disc- 10% 50 ---------------- Bill..

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

Please tell me entry for following bill. Goods 500 Disc- 10% 50 ---------------- Bill..

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

Please tell me entry for following bill. Goods 500 Disc- 10% 50 ---------------- Bill..

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

Please tell me entry for following bill. Goods 500 Disc- 10% 50 ---------------- Bill..

Answer / pushpendra

Bill Amount 500

Is This Answer Correct ?

2 Yes

2 No

Please tell me entry for following bill. Goods 500 Disc- 10% 50 ---------------- Bill..

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.