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Hi im wondering if somebody can help me on a question im stuck on for a cash book entry. The question is this:
Paid £650 to Bennett (Creditor) by BACS £32.50 discount being received.

Now would i enter into the cash book £650 or would i enter £617.50?

Little confused as to if i need to take the discount off before i enter it into the cash book or not?

Thanks in advance


  • Clintm15Clintm15 Well-Known FarehamRegistered Posts: 247
    edited October 2017
    The entries would be:

    DR Purchases £650
    CR Creditors £650

    DR Creditors £32.50
    CR Discounts received £32.50

    DR Creditors £617.50
    CR Bank £617.50
    Level 2 - 2011
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    Level 4 - 2013

    F4 - Corporate Law - Dec 2015 (passed)
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  • crispycrispy Trusted Regular SouthamptonRegistered Posts: 456

    I would enter £ 617.50 as you will matching / reconciling the cash-book to the Bank Statement. The Bank statement will show the actual amount paid to the supplier.

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