Cash Discount Entries in Tally (Notes)

In simple terms, Discount is an allowance or concession in price. Discount is given so that the buyer is induced  to place an order and later to make payment in time.

Discount can be also referred to as a deduction in price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount.

Types of Discounts

The two kinds or types of discounts are
1.Cash Discount
2.Trade Discount

1.Cash Discount:-

Cash discount is an allowance or concession given by the seller to the buyer. This discount is offered to encourage the buyer for quick payment or settlement. It is allowed for immediate payment of cash or payment within a short period.

Note:- 
To perform the concept we have to perform fallowing setting's 

Go to accounting vouchers 
Press F11 
Press F2 

Separate discount on coloum invoice = Yes.

PROBLEM 1:-

1. Mr. Srinivas started a Mobile business with 4,00,000/-
2. Cash deposited into SBI 50,000/-
3. Furnisher purchased 15,000/-
4. Purchase as follows:-
      a. Samsung mobiles – 15 sets @ 7000/- cash discount 12%
      b. Lenovo mobiles – 10 sets @ 5500/- cash discount 15%
      c. Nokia Lumia mobiles – 5 sets @ 6000/- cash discount 25%
5. Cash with draw from SBI 30,000/-

6. Sales as follows:-
     a. Samsung mobiles – 15 sets @ 12,000/- cash discount 10%
     b. Lenovo mobiles – 10 sets @ 9,000/- cash discount 20%
     c. Nokia Lumia mobiles – 5 sets @ 11,000/- cash discount 30%
7. Sales returns:-
    a. Lenovo mobiles – 2 sets cash discount 20%
    b. Nokia Lumia mobiles – 1 set cash discount 30%
8. Purchase returns:-
    a. Lenovo mobiles – 2 sets cash discount 15%
    b. Nokia Lumia mobiles – 1 set cash discount 25%


PROBLEM 2:-

1. Mr. Prakash started a Furnicher business with 10,00,000/-
2. Cash deposited into Andhra Bank 50,000/-
3. Rent paid through bank 15,000/-

4. Purchase as follows:-
      a. Double cots – 10 no’s @ 25,000 cash discount 5.3%
      b. Dining Tables – 15 sets @ 40,000/- cash discount 2.5%
      c. Divan cots – 10 sets @ 12,000/- cash discount 8%
      d. Dressing tables -20 sets @ 10,000/- cash discount 4.5%
5. Sales as follows:-
      a. Double cots – 7 no’s @ 34,000 cash discount 2.7%
      b. Dining Tables – 11 sets @ 48,000/- cash discount 5.5%      
      c. Divan cots – 5 sets @ 20,000/- cash discount 6.2%
      d. Dressing tables -15 sets @ 18,000/- cash discount 3.5%
6. Sales returns:-
      a. Dining Tables – 2 sets cash discount 5.5%
      b. Dressing tables -1 set cash discount 3.5%
7. Purchase returns:-
     a. Dining Tables – 2 sets
     b. Dressing tables -1 set

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