IS CASH DISCOUNT/RECIVED IS OPERATING EXPENSE/INCOME?




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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 ?    19 Yes 6 No

Answer / gautam kothari

Cash discount paid is an operating expense. 

Is This Answer Correct ?    4 Yes 6 No

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