Journal Entry for Discount Received - with Examples | Journal

The Meaning of Discount Received:

Journal Entry of Discount Received : 

1. Discount received and the net amount paid or the total amount payable is given:

Example No. 1:

05/02/2018 Amount paid to Mr. A of Rs 900/- and he allowed a discount of Rs 100/-.

Or

Example No. 2:

05/02/2018 The amount payable to Mr. A of Rs 1,000/- and he allowed a discount of Rs 100/-.