What is Purchase Discount
Purchase Discount is the concession on the purchased price of goods given by the seller to the buyer when he makes payment before due date. It is a Purchase Discount and Direct Revenue for the buyer while it is a Sales Discount which is a Direct Expense for the Seller. It is also k now n as Purchase Discou nt Contra Expense Account . Purchase Discount Journal Entry For a buyer i.e. a company (XYZ) which purchases the goods Worth Rs. 50000 from supplier (ABC Company) for reselling purposes (Assuming 2% Discount was given): ABC Company 1000 ...