Discount Allowed/Recieved

Whats the easy way to remember each one?

I keep getting them on the wrong sides!!!!!! :001_unsure:

Comments

  • GemmaLouise
    GemmaLouise Registered Posts: 56 ? ? ?
    Recieved has a c in it so it goes on the credit side!
    Thats how i remembered it!!

    Discounts recieved lowers the cost of the purchases for a business! It is 'other income!!!!'
  • Rachey
    Rachey Registered Posts: 589
    Whats the easy way to remember each one?

    I keep getting them on the wrong sides!!!!!! :001_unsure:
    I'll just tell you the way i remember it and then let others tell you the proper way (if there is one!)!!

    Discount allowed is a discount you are giving the customer off the selling price of an item or items. So because you are not receiving the full amount you could be getting, it is like an expense to the company. And therefore on the debit side.

    Discount received will then be on the credit side. I see discount received as 'income'. Just because if the selling price of an item was £20 and you get a discount of £5 then that £5 should have been handed over, but hasnt been so it can go back in the bank.

    I hope this very strange way helps you, there may be a few people who think i am weird but its got me through 2 years so far!

    Good Luck :-)
  • Chellby80
    Chellby80 Registered Posts: 25 ? ? ?
    The easiest way I remember it -

    R eceived on the R ight (DR) (starts with an 'r' so is on the right)

    A L lowed on the L eft (CR) (has an 'l' in it so on the left)

    Thats how I remember it and it works! Good luck!
  • CJC77
    CJC77 Registered Posts: 62 ? ? ?
    Chellby80 wrote: »
    The easiest way I remember it -

    R eceived on the R ight (DR) (starts with an 'r' so is on the right)

    A L lowed on the L eft (CR) (has an 'l' in it so on the left)

    Thats how I remember it and it works! Good luck!

    That is the way I was taught - Except If (r)eceived goes on the (r)ight - then surely it belongs on the credit side, not the debit side of the discounts account DR left and CR right side of T account - then it goes on the opposite of the control account.....?
  • Chellby80
    Chellby80 Registered Posts: 25 ? ? ?
    Yeah sorry, was having a blonde moment I think! I meant Received on the right DR, Allowed on the left CR! Sorry! I'll remove that post so as not to confuse people!
  • lori
    lori Registered Posts: 25 Dedicated contributor ? ? ?
    i remember it by discount received Cr so discount allowed Dr
    lori
  • jkc
    jkc Registered Posts: 166 ? ? ?
    more numonics

    discount allowed debit = dad
    discount recieved credit = drc
    returns inward debit = rid
    returns outward credit = roc
    am i right on the last two i cant remember any more help!
  • MWAUGH1983
    MWAUGH1983 Registered Posts: 420
    From my foundation studies with kaplan; we were told to remember the difference by remembering Discounts alloweD has a D in it and Discounts reCeived has a C in it.
  • CJC77
    CJC77 Registered Posts: 62 ? ? ?
    MWAUGH1983 wrote: »
    From my foundation studies with kaplan; we were told to remember the difference by remembering Discounts alloweD has a D in it and Discounts reCeived has a C in it.

    This may seem obvious - but receiveD has a D as well!
  • bagpuss3008
    bagpuss3008 Registered Posts: 32 ? ? ?
    Hi
    I always remember to Debit the Discount allowed (I then know received is the other one!!)

    Bag
    x
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