Question

discount received are
1. deducted by us when we pay our accounts
2. deducted when we receive cash
3. given by us when we sell goods on credit
4. none of these

Answer 1

I think

when we deducted by us when we pay our accounts

Answer 2

DISCOUNTS RECEIVED

Discounts received are (1) deducted by us when we pay our accounts.

GETTING TO KNOW MORE ABOUT DISCOUNTS RECEIVED:

* The buyer can receive one of two sorts of discounts. The first is a Trade discount, followed by a Cash discount. The trade discount is not accounted for in the books.

*  It is usually given out at the time of a sale, such as when buying in bulk. As a result, in the books, the Purchase amount is reflected net of trade discount. As a reward for paying on time, you'll get a cash discount. In the profit and loss statement, it is recorded as an income.

*  The Purchases are first displayed in their entirety. The payment is then lowered by the amount of the discount. In the buyer's records, the discount is recorded as an income. As a result, while making accounting entries in the books, it is credited.