Trade Discount / Cash Discount

[irfan_143]

I need a help regarding recording sales tax invoice from a customer.
we have received an invoice from xyz comapnay with following details.

Total Value = 56880/-
Discount @ 4% = 2275.20/-
Value after tax = 54604.80/-
Sales tax @ 0% = 0
Total value = 54,604.80/-

Now i am confused to recored this discount or not. as for my knwoledge is concern the entry will..

Purchased = 56880 DR

XYZ = 54604.80
Discount received = 2275.20

[LapTop]

ap ki entry sahi hay

[irfan_143]

Thnx a lot Leptop bhai.. Lakan Discount received tu sirf cash discount kay liy istamaal huta hai.. our ye trade discount.. plz ans.. our kya hum trade discount ko as a discount received entry kar saktay hai.. our p&L may show kar saktay hai under the head.. Other incomes sub head discount received..

with regards..

[LapTop]

Irfan bhai,

Mujhay itni achi accounting to nahi aati hay, ye to koi accountant hi bata sakta hay, par mery hisab say jo discount aap receive karty han wo ap ki income/ revenue hota hay isi liye ap usy Credit kar k increase karty han.

[Information Consultant]

sales discount or trade discount may farq hay
cash disount is a reduction inpurchae price in case of prompt payment while trade discount is the reduction granted by supplier from th elist price of goods in case of buying or long term contract
sales dic p& L may charge kartay hain

[LapTop]

Consultant bhai,

Ye trade discount or sale discount jo hayn in ki koi aysi example dayn k mujh jaysy ko bhi samajh aaye jisy accounting ki zayada knowledge nahi,,, yani roz marah ki koi missal day kar wazay karyn,

[Information Consultant]

Minor sa farq hay trade dis purchase per hota hay cash dis payment per medecine com apnay distributor ko dif dis daitain hain depend karta hay qty per or agar koi cash per lay ya 10 din kay credit per ly to inko aik or dis offer kia jata hay jo cash dis hota hay