Income statement Discounts Received
A-Vic
Registered Posts: 6,970 Beyond epic contributor 🧙♂️
Sorry having a brain block
I know discounts allowed are included in the overheads
But are the discounts received taken from purchases when working out gross profit? (silly i should know this stuff but ive gone blank)
I know discounts allowed are included in the overheads
But are the discounts received taken from purchases when working out gross profit? (silly i should know this stuff but ive gone blank)
0
Comments
-
Hello,
I would show Discounts Received as 'Other Income' eg.
Gross Profit £ xx
Other Income £ xx (ie: Discounts Received, Bank Interest Received)
Overhead Expenses £ (XX)
Net Profit £ xx0 -
Hello,
I would show Discounts Received as 'Other Income' eg.
Gross Profit £ xx
Other Income £ xx (ie: Discounts Received, Bank Interest Received)
Overhead Expenses £ (XX)
Net Profit £ xx
Great thanks Crispy :thumbup1: so would that just be added to gross profit before you work out net profit0 -
Yes - that sounds good to me.
Only other thing to watch for are 'Returns In/Out'. These would be part of the trading account and should therefore be deducted from Sales / Purchases respectively.0 -
Thanks peeps :001_smile:0
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