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is Discount Allowed Indirect Expences?

Answer Posted / p. navaneetha krishnan

Discount Allowed is a Part of Direcet and Indirect Expenses.

1. Discount Allowed through Sales Invoice is - Direct
Expenses.

2. Discount Allowed at the time of collection of Cheque
from the Customer / Debtors (some / specified % on amount
of outstanding has been reducred from the collectable
amount) is a Indirect Expenses.

CONCEPT.

1. Any discount given to customer to promote the sales
(directly) is a Direct Expenses.

2. Any discount given to customer to any other reasons,
like Management decission for proper fundflow and other
reasons is Indirect Expenses.

Is This Answer Correct ?    69 Yes 6 No



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