DISCOUNT

Accountancy

Dear Sir, How to account " Buy one and Get One free" Is it a trade discount ? For example a trader who has stock of 100 tables (Cost price per table Rs.200/-) one of his customer buys 5 tables from him , as the customer buys 5 tables ,the trader has to give him 10 tables, because it under "BUY AND GET ONE FREE" term. 1) Is this a trade discount ? 2)How this transaction will get entered by the trader . Please show Journal entry and amount also. Please guide me sir.

Thankachan Jimmy

CMA Inter

★ 0

06-Feb-23 07:50

429

Answers (6)

Best Answer

Thread Starter

Thankachan Jimmy

Sir, is this in the nature of Trade discount ?, because we have not shown DISCOUNT in Journal entry.

Yes. You can consider it that way.

CA Suraj Lakhotia

Admin

06-Feb-23 17:51

I am not sure is everything right or wrong. I think, 1. This is not Trade Discount. 2. Bank or Debtors A/C Dr 1000 Discount A/C Dr 1000 To Sales A/C 2000

Karthick A

CA Final

★ 1K+

06-Feb-23 08:35

You will record the sales at 1,000 only. No separate accounting would be done for discount. Because the seller has sold 10 tables at 1,000

CA Suraj Lakhotia

Admin

06-Feb-23 09:34

CA Suraj Lakhotia Admin

You will record the sales at 1,000 only. No separate accounting would be done for discount. Because the seller has sold 10 tables at 1,000

Okay Sir. Thank you Sir.

Karthick A

CA Final

★ 1K+

06-Feb-23 09:56

Sir, is this in the nature of Trade discount ?, because we have not shown DISCOUNT in Journal entry.

Thread Starter

Thankachan Jimmy

CMA Inter

★ 0

06-Feb-23 10:45

Thank you sir...

Thread Starter

Thankachan Jimmy

CMA Inter

★ 0

06-Feb-23 21:52

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