Ali Ahmed Khan (CA Student) (245 Points)
03 August 2016
CA Anand V Kabra
(Author Teacher Mentor)
(584 Points)
Replied 07 August 2016
If discount is affecting the VAT amount then cash discount shall be considered in accounting entry, else you can simply ignore it!
Baljeet Singh
(CA, B.Com (H))
(954 Points)
Replied 28 October 2016
If a Tax Invoice is raised, and we are receiving payment agaisnt it. If we do no consider the cash discount entry in our books the amount of Cash DIscount offered will still be standing to the Buyers' Debit.
Thus the closing entry would be:
Cash A/c ...dr
Discount (Cash)...dr
To Party A/c
To VAT Payable A/c
Fellow members please share your views.
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