Discount allowed is an expense,take an example if one makes a cash sale and offers a cash discount,it reduces the cash paid and thus accounted for as an expense,a Discount received is treated as a revenue because take an example if one buys goods and pays cash and the person selling grants a discount,it reduces the amount paid and thus an added revenue,the difference on what i paid and what was ought to be paid,its always given in percentage,with set conditions.Types of discounts can be trade or cash both allowed and received.
does discount allowed and discount received go into the income statement or balance sheet?
There is some difference in financial statement income as well as taxable income as in financial statement income there are items which are not allowed by tax authorities and main item is depreciation. Other factors are that tax is deducted on income which is received while in financial statement income included revenue which is not received or accrual items that needs to be adjusted as well that's why financial statement income and taxable income is not same.
True
Prepaid Income is a balance sheet item. Income received in advance is treated as Liability of the firm. The same get transferred to Income Statement / Profit & Loss Account when income is earned. Followed by Accrual Accounting concept and Accounting Period Concept, such income received before they are actually earned are booked as a liability and get transferred to Income Statement as income upon actually earning them.
If commission is already received or paid then it is income statement item, but if it is still receivable or payable then it is balance sheet item, simple commission is a income statement item
List of anything that produced income (e.g. selling goods, performing services, renting property), usually referred to as gross profit. You would list the amounts you actually received (minus discounts, returns, allowances, etc.).
a credit card discount would be a credit, not an expense.
Accrued income is income which the company has earnd but not yet received and shown as a current asset in balance sheet.
Comparative income statement is same as normal income statement with little addition of that income statement as well from which comparison is required.
Comparative income statement is same as normal income statement with little addition of that income statement as well from which comparison is required.
Following are two catagories of income statement: 1- Single Step Income statement 2- Multy-step income statement
no. income statement is a only a statement in financial statements.