unit 2 simulation

[louray]

Hi,<BR><BR>I'm stuck!!<BR><BR>If a supplier gives you a trade discount, i understand that the posting in the Main Ledger is cr Disc allowed dr PLCA. <BR>But when you are posting to the cash book, from a sample invoice, what do you put for the total, the sub total minus the trade discount or the original total. <BR>By the way the cash book doesn't have a discount column!<BR><BR>I hope this question makes some sense!<BR><BR>Thanks in advance...

[trainee]

Hi,<BR> with reference to your question, invoice will have subtotal, tax & total.<BR>the entrys in the cash book are as folllows<BR>CASHBOOK<BR>PLCA/SLCA = total of invoice ie amt to pay<BR>Vat= vat amt<BR>purchases/sales= sub total<BR><BR>the trade discount doesnt go anywhere. <BR>the only discount you would have to post over is the settlement discount from the invoice to the cashbook,subsidiary ledgers & PLCA/SLCA<BR><BR>I hope this helps<BR><BR>Any other probs e-mail me<BR>debra.smith36@btinternet.com<BR><BR>I cant promise to answer everything but i did my simulation unit 2 today!<BR><BR>good luck<BR>

[louray]

THANKS!!!!<BR><BR>it has been bugging me all day, i remembered what to do with settlement discounts but went blank on what i'd learned about the trade/bulk!<BR><BR>It was only a practice paper today thank goodness!