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What is double entry treatment of DISCOUNT Allowed and Received?
Discount allowed: original entry made in the discount allowed column on the debit side of the cash book and at the end of the month debited(after balancing the cash book) in the nominal ledger. The credit entry is made in the personal account of buyer. Discount received: original entry made in the discount received column on the credit side of the cash book and at the end of the month credited(after balancing the cash book) in the nominal ledger. The debit entry is made in the personal account of seller.
Meaning of discount allowed?
whenever businessman permits less payment than actual one to the buyer whatever benefit buyer is getting is called discount at the time of purchase or at the time of payment. discounts are of two type trade discount and cash discount. when buyer purchases the product in huge quantity seller gives trade discount and on credit sale seller instruct buyer if buyer will pay the amount within time limt permited by seller he will give cash discount.
What type of an account is a purchase discount?
contra-expense It's an expense, not a contra expense. If you don't pay the bill within the discount period, and you had recorded the original purchase at net (Purchase price less the early pay discount) then you have more expense, not less, when you don't pay on time.
Is establishing a 1 percent 10 days Net 30 term would be considered a benefit to a customer and should typically be offered after they have established a quality payment pattern?
False. It would be a benefit to both the customer and the company. This woul mean if the customer wants a discount from the supplier they would need to pay the invoice within 10 days to receive the discount, and this would then allow the company to receive their money quicker.
What is the difference between discount allowed and discount received?
discount allowed means the discount which is given by a seller to the buyer. and discount received means the discount received by the seller for purchases made
How do you find the discount knowing only the discounted price and original price?
Discount = Original Price - Discounted Price Percentage Discount = 100* Discount / Original Price
How do you calculate percentage discounts?
Discount = Original Price - Discounted Price.Percentage Discount = 100*Discount/(Original Price)
Which companies issue share in discount?
Companies who are in the market from long period of time can issue shares at discount.
What is the original price with a 20 percent discount you get 249.99?
$312.49 ; here's how: You have original price is 100%, final price = original price - discount amount, and discount amount = original price * discount percent.So Final price = original price - original price * discount percent = (Original price)*(100 % - discount percent).249.99 = P0 * (100%-20%) = P0 * (0.80) ---> P0 = 249.99 / 0.80 = 312.4875
How do you find the original price of discounted item?
You need to know the discounted price and either the discount amount or the discount rate. If you know the discount amount: Original Price = Discounted Price + Discount If you know the Discount Rate (percentage discount ): Original Price = 100*Discounted Price / (100 - Discount Rate)
What is the original list price if the discount is W and the discount rate is W?
The original price is 100.
What's the benefit of discount travel insurance?
The benefit of the discount variety of travel insurance is, as suggested by its name, the opportunity to save money. The benefit of travel insurance is for the safety of oneself and his or her possessions.
How do you find the discount if you have the original price and the sale price?
Discount = Original Price minus Sale price.
What is a benefit of centralized buying?
quantity discount
What is the benefit of purchasing discount toys?
The benefit of purchasing discount toys is that you can save a little bit of your money. With that money you save, you can buy other things or you can save it.
How do you calculate original price if iam given the discount and the on sale price?
Original price = Sale price + Discount amount
Why issue rights issue of shares at a discount?
when shares aree issued at a lower than the face value they are said to be issue of share at discount. the main reason behind issuing share is to attract retailer
