Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Entry for goods sold at discount

Ks (Ac) (138 Points)

07 August 2022

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 ??

Reply
Follow
Share

4 Replies

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 08 August 2022

Same is recorded under sales just like other sales.

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

prasad Nilugal ( GST Practitioner & Accounts ) (14546 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)

2 Like

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 ) (14546 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 .