Income statement
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Cundy27_uk
Registered Posts: 4
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
Also I have a debit cash and credit bank, how would I enter this on statement of financial position??
Thanks
0
Comments
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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.AAT
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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)0
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Please remember DaD and DrC.
DaD is Discounts Allowed Debit.
DrC is Discounts Received Credit.
Literally, just say dad and doctor C in your head when you see them and I promise they will stick in your head.0
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