Question

Where is “Discount allowed” shown in the Profit and Loss Account?

विकल्प

• Debit side as an expense

• Credit side as an income

• Asset side of the balance sheet

• Deducted from sales

Answer 1

Debit side as an expense

Explanation:

Discount allowed (given to customers) is an indirect expense, so it is recorded on the debit side of the Profit and Loss Account