Month: October 2021

Bookkeeping

What is the Journal Entry for Discount Allowed?

Here liabilities decrease in the form of creditors, so according to the rules (decreases in liabilities are debits), Vijay’s account will be debited ₹1,00,000 while passing the journal entry. An aspect that needs to be noted here is that only cash purchase discounts are included as subtractions from gross purchases. As there are different types […]