DISCOUNT ALLOWED

Discount allowed is an exp for the seller Discount received is an income for the buyer...

Balachandar S

CA Inter

★ 59K+

07-Feb-23 08:15

It's a loss... Not an expense as no money goes out of pocket Discount allowed is just a loss. We can also take Seller is giving goods in low profit than fixed already

Nivetha Baskar

CA Inter

★ 3K+

07-Feb-23 09:24

Discount allowed is an indirect expense Discount received is an indirect income

Anand Mathew

CA Inter

★ 290

07-Feb-23 09:42

Sir, Please clarify. In the lecture video sir says it is a loss but now somebody says it is an Expense. Which one is right ?.

Thread Starter

Thankachan Jimmy

CMA Inter

★ 0

07-Feb-23 10:54

Discount allowed is a loss because when you sale goods at discount you get lesser amount than selling price the difference between these two will be your loss.

Amit Pandit

CA Final

★ 33K+

07-Feb-23 13:36

Here some persons said it is a loss, but my question is that why seller reduces the amount intentionally which he has actually right to receive ? If it is loss, does seller wish to bear loss - Absolutely No. Seller giving a rebate of payment for some hidden benefits like to attract customers for buying more or to avoid escape of payment by buyer in case of credit.so, Discount allowed is an expense from my pov. On the other hand, loss is something which an entity bears without any benefit to the enterprise

kalyan yuva

CA Inter

★ 5K+

07-Feb-23 16:07

In a lot of cases loss and expense are used interchangeably. Do not overanalyse.

CA Suraj Lakhotia

Admin

07-Feb-23 17:00