Discount Allowed and Discount Received entries

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Discount Allowed and Discount Received entries

Discount Entries. Image credit moneysavingexpert.com

Discount Entries. Image credit moneysavingexpert.com

ZIMSEC O Level Principles of Accounts Notes: The Cash Book:Discount Allowed and Discount Received entries

  • Consider the following entries and enter them into the books of J Haudzwi

July 20×9
1 Started the business with $1000 Cash
3 Deposited $600 from the cash at hand into the bank
10 Bought goods on Credit from J Mafana for $360
15 Sold Goods on Credit to S Mutiro $500
22 Made Cash Purchases for goods worth $200
28 Paid J Mafana $324 by Cheque and received 10% discount
30 Received $475 Cash from S Mutiro in full settlement of the amount owed by him

NB These are the only transactions that took place during the month of July

Solution

Cash Book
DetailsDiscount AllowedCashBankDetailsDiscount ReceivedCashBank
$ $ $ $ $ $
Capital1000Bank600
Cash600Purchases200
S Mutiro25475J Mafana36324
Balance c/d675276

25

1475

600

36

1475

600

Sales Ledger
S Mutiro Account
DateDetailsAmountDateDetailsAmount
$ $
30 JulySales500July 15Cash475
July 30Discount Allowed25

500

500

Purchases Ledger
J Mafana Account
DateDetailsAmountDateDetailsAmount
$ $
July 28Bank324July 10Purchases360
July 28Discount Received36

360

360

General Ledger
Purchases Account
DateDetailsAmountDateDetailsAmount
$ $
July 10J Mafana360Balance c/d560
July 22Cash200

560

560

Sales Account
DateDetailsAmountDateDetailsAmount
$ $
July 31Balance c/d

500

July 15S Mutiro

500

Discount Received Account Account
DateDetailsAmountDateDetailsAmount
$ $
July 31Balance c/d

36

July 31Total for the month

36

Discount Allowed Account Account
DateDetailsAmountDateDetailsAmount
$ $
July 31Total for the month

25

July 31Balance c/d

25

NB We have omitted the date column in the Cash Book so that it can fit in most browsers more easily. You should include it in your own answers

To access more topics go to the Principles of Accounts Notes.

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By | 2017-01-17T11:14:33+00:00 March 13th, 2016|Notes, Ordinary Level Notes, Principles of Accounts Notes|0 Comments

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.

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