Tell Me Should The Cash Discounts Gl Hit The Balance Sheet As Per Us

1.	Tell Me Should The Cash Discounts Gl Hit The Balance Sheet As Per Us Accounting Concept? If Yes, Then Why And If No, Then Why?
Answer» <P>I believe that cash discounts are taken into P&L and not to the B/S. The journal would be : DR. Bank A/c 90 Dr. Cash Discount given A/c 10 CR. S. Drs 100 So it is taken into P&L and adjusted in the Net profit itself.. HENCE, you add the Net profit with your capital in B/S. So, net effect is given there. I believe that cash discounts are taken into P&L and not to the B/S. The journal would be :

Tell Me Should The Cash Discounts Gl Hit The Balance Sheet As Per Us Accounting Concept? If Yes, Then Why And If No, Then Why?

Answer»

<P>I believe that cash discounts are taken into P&L and not to the B/S.

The journal would be :

I believe that cash discounts are taken into P&L and not to the B/S.

The journal would be :