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Help me with Discounts Allowed and Received

ASDjebASDjeb LondonRegistered Posts: 9
I can't for the life of me figure this out but i am always getting them muddled.
I just can't remember whether they are debit or credit, which way round the go!!

I have an exam on sunday and so far i just keep getting them wrong in all my practise samples!!

Help me please!

Comments

  • FrancesMFrancesM Registered Posts: 14
    The way I remembered it was that Discount received are for sales as you receive money for sales.
  • ASDjebASDjeb LondonRegistered Posts: 9
    ok, thanks, i will try applying that logic.
    Ive no idea why but everytime i am presented with them my mind goes blank and i can't figure out which way round they go!
    Probably over thinking it!!
    thanks
  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    FrancesM, are you sure?

    The AAT materials may be different (and if they are you should go with that), but normally discounts received are discounts YOU (as the company) have received, ie. discounts on your purchases. They are therefore a credit as they reduce the cost of the purchase.

    Discounts allowed are discounts you have allowed to your customers, ie. discounts on your sales. They are therefore a debit as they reduce the value of the sale.
    MarieNoelle
  • ASDjebASDjeb LondonRegistered Posts: 9
    so if i think
    Discounts RECIEVED = income. therefore a credit.
    Discounts ALLOWED = loss of income, and by default, are a debit.

    got it right in my last sample assessment!
    Thanks both
  • FrancesMFrancesM Registered Posts: 14
    Ceejaysix. Yes, I'm wrong, oops, still learning....
  • cleesclees Registered Posts: 33
    just remeber DAD and doctor C

    DAD - Discount ALLOWED DEBIT
    Dr C - Discounts recieved CRedit
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