- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
In the Kaplan book, it is stated in Chapter 5
“When preparing the final accounts, discount received is normally netted off against the purchase expense to reduce cost of sales”.
Later in Chapter 17- Preparing basic financial statements- an example for preparing financial statements shows that the discount received is included as a line item after gross profit is calculated.
Is there a discrepancy in how it was dealt with or am I missing something.
It can be done either way – the final profit will be the same.
Obviously you cannot be asked to prepare full financial statements in the exam 🙂
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Discount received’ is closed to new replies.