Interested to Buy Any Domain ? << Click Here >> for more details...
what is the difference between cash discount and trade
discount.
what is the journal entry for purchase of 100000 giving
(a) 5% trade discount
(b) 5% cash discount.
- 20 Answers
- 58059 Views
- TCS, I also Faced
- E-Mail Answers
Answer Posted / sreejith as
Trade Discount is the discount provided on bulk purchases
and generally trade discount is not shown in the books of
accounts the entry for purchase of 10,000 5% trade
discount is
Purchase A/c....Dr 9500
To Sundry Debtor/cash/bank A/c. 9500
Cash Discount is the discount provided for payments made
before due date and for cash purchases and this is gain to
the company and is shown in the books of accounts and the
entry will be
At The time of purchase
Purchase A/c.... Dr 10000
To Sundry Creditors A/c 10000
At The Time Of Payment Before Due.
Sundry Creditors A/c Dr. 10000
To Discount Received A/c 500
To Cash 9500
| Is This Answer Correct ? | 6 Yes | 3 No |
Post New Answer View All Answers
Explain what are the different functions of internal audit?
What do you know about KPMG?
What are the essential of internal audit?
i have to finalize a mineral water co. for the year 2014-15 and i want to know that what will be rate of excise duty on sale of mineral water.
What is CARO 2003? What do you mean by management audit?
please tell me how to take the stock of goods in Tally ERP9 in case of Useing FORM F (Company Sent the Stock Send me against Form 38 & after sale He want from me FORM F ) Thank U
How to Computation Advance Tax For First Quarter
Explain the importance of internal audit to the organization?
How to do an internal audit effectively?
what is the PRPOER way of accounting salaries ETF EPF
Why does a systems auditor need to use professional judgement when selecting audit procedures?
How does an internal audit differ from an external audit?
What do you find the most challenging in Accpuntant role
What are the different types of audits?
What are the basic principles of an internal audit controlsystem?
