goods sold at discount/or at cost price because the goods are display goods what is the accounting treatment for it
does it is recorded or not ??
4 Replies
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 08 August 2022
Same is recorded under sales just like other sales.
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 08 August 2022
Trade Debtors A/c Dr
To Sales. A/c Cr
To CGST. A/c Cr
To SGST. A/c Cr
(Sales booking entry)
Bank A/c Dr
Discount A/c Dr
To Trade Debtors A/c Cr
( Discount entry)
To Sales. A/c Cr
To CGST. A/c Cr
To SGST. A/c Cr
(Sales booking entry)
Bank A/c Dr
Discount A/c Dr
To Trade Debtors A/c Cr
( Discount entry)
Ks
(Ac)
(138 Points)
Replied 09 August 2022
does this discount is recorded or not and is this trade discount
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 10 August 2022
Yes , you have to record discount in the books of accounts, if it is not Trade discount. Also you have apply section 15(3) of the CGST Act in case of discount .
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