A
discount which is given by the seller to the buyer at the time of receipts of
credit sale is called discount allowed.
For
example: Aslam purchase a book from Asif on credit for Rs. 1000, on the
condition that he will make payment after 2 month, Asif (seller) give chance to
buyer if he make payment in one month then discount will be allowed at the rate
10%. Aslam make payment before one month.
Discount=
1,000 x 10/100 =100
Asif
will record Rs. 100 as discount allowed and Rs. 900 for payment.
No comments:
Post a Comment