Interested to Buy Any Domain ? << Click Here >> for more details...
Please tell me entry for following bill.
Goods 500
Disc- 10% 50
----------------
Bill Amt 450
- 8 Answers
- 9112 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
WHAT IS NPF IN ACCOUNTS. AN ENTRY IN BANK STATEMENT" NPF SOME NAME XXXX DR SIDE" PLEASE ANSWER WHAT IS NPF?
What are the important things to be remembered while preparing a bank reconciliation statement?
What is the difference between General Ledger and Ledger?
Describe the proof of cash type of bank reconciliation?
Explain me fair value accounting?
What are the functions of manger -accounts and manager-finance?
Expand ctc cheque?
Discuss the consistency concept in accounting
What are source documents in accounting?
Equipment A has a cost of Rs.75,000 and net cash flow of Rs.20000 per year for six years. A substitute equipment B would cost Rs.50,000 and generate net cash flow of Rs.14,000 per year for six years. The required rate of return of both equipments is 11 per cent. Calculate the IRR and NPV for the equipments. Which equipment should be accepted and why?
What is process of Vendor Reconciliation and which items will be Add and Less from ad per customer books likes step by step 1-Credit Note shown in vendor a/c but not booked in our a/c- Add or Less 2-Debit Note not shown in vendor a/c but booked in our a/c - Add or Less 3-Invoices not booked in our a/c but shown in vendor a/c- Add or Less 4-Payment booked in our books but not shown vendor- Add or Less If our balance is plus or minus rules is same. like 20000, (-20000) Sir, Provide your mobile n for clarify
How to create a liability for Service Tax in SAP
all ques. related to accounts?
What is difference between Cash Flow and fund flow
how to geting finished goods cost with included it's all BOM and all production order cost in sap?
