Cash book question (discounts)

SarahB

Hi,

Please could someone tell me if you put the figure in the bank column before you take the discount off or is it the figure after the discount with reference to cash books? Hope that makes sense.

Many thanks

SashaDella

The amount you put in the bank column is the actual amount that went into the bank so it would be the discounted amount, and then you enter the amount that was discounted into the discount column

Hope that helps!

GemmaS

Hi Sarah,

You would put the amount that you receive/pay into the cash book.

If it was Discounts allowed to a customer it would be:
Dr Bank with amount received
Dr Discounts allowed with amount of discount
Cr Sales ledger Control Account (this would be 2 seperate entries one showing how much you received from them and a seperate entry for the discount allowed - this is the other side of the double entry to debiting discounts allowed)

For supplier Discounts received:

Dr Purchase ledger control account ( 2 seperate entries one for the amount paid and one for the discount received)
Cr Bank amount paid
Cr discounts received (this is the other side of the entry into the PLCA showing the discounts received)

Hope this helps?

Gemma

SarahB

Hi

Many thanks yes it makes sense now.

Thank you