Retail
Senior Citizen / Loyalty Member Discount
Recording a sale with a permanent 10% discount for a loyalty programme member.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Hand | Asset (+) | 104.40 | - |
| Sales Discounts (Loyalty) | Contra-Revenue (+) | 10.00 | - |
| Sales Revenue | Revenue (+) | - | 100.00 |
| VAT Output Tax Payable (16%) | Liability (+) | - | 14.40 |
💡 Accountant's Note
Loyalty discounts are contra-revenue — they reduce net sales without affecting the VAT base, which is calculated on the actual amount paid by the customer.
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