What will be the accounting entry for this?

This query is : Resolved

Harpreet Singh (Querist)
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07 April 2018 Ram sold a Saree to Sita for Rs. 5,00,000. cash discount is 10%, trade discount is 10% and gst is 18%. What will be the accounting entry in this case with amount?

Guest

Guest (Expert)

07 April 2018 Cash A/c Dr. 4,72,000
Trade discount A/c Dr. 50,000 (10% of 5 lac)
Cash discount A/c Dr. 50,000 (10% of 5 lac)
To Sales 5,00,000
To CGST 36,000 (9% of 5 lac - Discounts)
To SGST 36,000 (9% of 5 lac - Discounts)

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)
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09 April 2018 i THINK trade discount does not come in the accounts ...

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Guest

Guest (Expert)

09 April 2018 Yes, in the trading account. But it may be kept if required. You can show net sales value in trading account.