Anand (NA) (97 Points)
11 June 2015
| Qty | Rate | Value |
| 6912.7 | 83.25 | 5,75,482.28 |
| Deductions for Assesable Value | ||
| Trade Discount | (13,825.40) | |
| Freight Discount | (24,194.45) | |
| Total Assesable Value | 5,37,462.43 | |
| Excise | 66,430.36 | |
| 6,03,892.78 | ||
| CST @ 2% | 12,077.86 | |
| Freight | 24,194.45 | |
| Total Value of Goods | 6,40,165.09 |
How to Account Freight and Discount from this bill.
Thanks for your reply
CA Salman Ansari
(Salman Ansari & Assoc.)
(247 Points)
Replied 11 June 2015
Hello Anand,
Trade discount is not accounted for, only Cash discount is.
And the freight discount has been reduced from the Price for CST calculation purposes, and is therefore added back later.
Therefore, the accounting process will start with the Assessable value of 5,37,462.43.
Purchase A/c Dr. 5,37,462.43
Input excise A/c Dr. 66,430.66
Input CST A/c Dr. 12,007.86
Freight A/c Dr. 24,194.85
To Debtor A/c [Total of the above]
Hope this helped.
Ansari Salman
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