Journal entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2015 Dear All,

please suggest me about a Journal entry Given Below

I am A FMCG Distributors (Debtors) of Hindustan uniliver Ltd.

Now We have given some discount to our debtors..
and that money will reimburse By hindustan uniliver ltd..

then should we show it under others incomes or Anything else ?

Please suggest me.

praveen

praveen (Expert)
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16 October 2015 You can show it as discount given on sales under expenses and discount received on purchases under income.

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2015 thanks Sir,

is there any options that we can show it under current liabilities as payable and then et off this through Journal Voucher.

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CA Mukund Sarda

CA Mukund Sarda (Expert)
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16 October 2015 Option1.
FirSt u give discount to ur debtors hence it is an expense for u , so book it as an expense. When u receive discount u can either credit the same discount a/c above or credit it in other income A/c

option 2.
Pass the following JV for the amt of discount to be re-imbursed by HUL

HUL A/c Dr 100
To Debtor A/c 100

In this way it will neither be ur income nor your expense.