How you get the amount of discount received account ?
Dear student,
Cash discount is allowed to the customers for making prompt payment. In other words, cash discount is allowed only if the customer makes the payment within the fixed period. As cash discount is allowed at the time of making payment, so the entry for this discount is recoded along with the entry for payment. While trade discount is related to purchase and not the payment, so no entry is passed for this discount.
* Since, the chapter name mentioned is Goods and Services Tax, so the solution for this transaction is provided for both cases:
With GST
Without GST
Case 1- With GST
Case 2- Without GST-
Regards
Cash discount is allowed to the customers for making prompt payment. In other words, cash discount is allowed only if the customer makes the payment within the fixed period. As cash discount is allowed at the time of making payment, so the entry for this discount is recoded along with the entry for payment. While trade discount is related to purchase and not the payment, so no entry is passed for this discount.
* Since, the chapter name mentioned is Goods and Services Tax, so the solution for this transaction is provided for both cases:
With GST
Without GST
Case 1- With GST
Case 2- Without GST-
Regards