Income statement

Where do disc allowed go on income statement? Would I put them under expenses or liabilities??
Also I have a debit cash and credit bank, how would I enter this on statement of financial position??

Thanks

Answers

  • Clintm15Clintm15 Well-Known FarehamRegistered Posts: 233
    An income statement only has 'income' and 'expenses', the statement of financial position has 'assets' and ' liabilities'.

    Discounts allowed are contra income, so they operate like expenses.

    If you debit cash and credit the bank, you are withdrawing money from the bank. So bank decreases and cash increases.
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  • ashakantasharmaashakantasharma Guwahati, Assam, IndiaRegistered Posts: 1
    Any kind of Discount allowed to customers is Expense for the business organisation and will come in Income Statement (Profit & Loss Account of the business organisation)
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