IS CASH DISCOUNT/RECIVED IS OPERATING EXPENSE/INCOME?




Answers were Sorted based on User's Feedback



Answer / h.r. sreepada bhagi

No. Cash Discount Received or paid are not Operating
Income/Expense. Only Trade Discount shown in the
Purchase/Sales Income is an operation item and needs to be
adjusted with Purchases/Sales while accounting the transaction.

Cash Discount Received can be accounted as Other Income &
Cash Discount Allowed/Paid can be accounted under Financial
Charges, as this is a result of financial decision.

Is This Answer Correct ?    18 Yes 5 No

Answer / gautam kothari

Cash discount paid is an operating expense. 

Is This Answer Correct ?    2 Yes 3 No

Post New Answer




More Accounting General Interview Questions

in our co we are sales of good to branch in order sales+fright, branch made jv entry in own book as full amount debit and credit. now our book show sales without freight but branch shows including freight that why differences is arise due to wrong entry passes pls clarify this entry and this entry is done last year book now balance is finalize.

0 Answers  


what is the difference between cash book(cash coloumn) and cash book(bank coloumn)?

0 Answers  


what is enty of income tax paid by company.& what is group of income tax paid.

9 Answers   Genpact,


HOW DO PREPARE CASH FLOW

2 Answers  


KINDLY EXPLAIN THREE TYPES OF ACCOUNTS WITH EXAMPLES

7 Answers   DCA,


How to void a payment

0 Answers   Accenture,


total assets are equal to total liabilities in final accounts ?why?

0 Answers  


machinery purchase of 10000 plus transportation 800 what will be the journal entry

2 Answers   Air Smart HVAC Solutions, SS Solutions,


matching concept

2 Answers   Capital IQ,


what is journal entries for Vehicle loan settled with bank after Sale of the vehicle on profit or loss in case the party paid check direct to Bank .......???

2 Answers  


WCT DEFINATION

1 Answers  


How to Finalized Accounts? Please Guide.

2 Answers  




Categories