[trade discount should be deducted from purchase and the same case in sale=KinzaShoaib;664871]Sorry for late reply, I was busy with my state bank test.

Although the adjusting entry for Stock or goods taken by owner is "drawing a/c debit and trading a/c credit" yet we deduct the stock from purchases, this is the rule I read in both M.Arif's and Ghani's book.


This question confuses me too and I read thoroughly the theory of M. Arif's book for this. In M.Arif's book only the terms " Discount on Purchases" and "discount on Sales" are treated as trading a/c items i.e. deducted from purchases and sales respectively and all other terms like discount allowed, discount received or discount are treated as profit and loss a/c items so i treated discount allowed and discount received as profit and loss item.[/QUOTE]

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