Sarthak Khanna asked 6 years ago
Sir, If we assume that rebate was given subsequently( I.e after sales)…then it means that rebate already included in turnover.
And secondly if it was given initially at the time of sale …tb to ye given turnover me included hi ni hogi..
Toh phr answer me deduct kyu ki hai ?
Ravi Staff answered 6 years ago
Hello Sarthak
it is clearly mentioned that Special Rebate is like Trade Discount
In such type of questions generally Turnover Means = Qty X Standard Rate , So we have to reduce trade discounts also from it.
So if you understand this pint that Turnover = Qty X Std Rate you wont have confusions
Sarthak Khanna answered 6 years ago
But sir Trade Discount is generally for bulk purchase and therefore it is given at the time of purchase…& Thus there’s a higher possibility that it would be mentioned on the invoice.
And that’s why I am saying that we shouldn’t have deducted it…