Question

What is provision for discount on debtors

Answer 1

Provision for discount on debtors refers to the amount which a firm looses due to the allowance of discounts.
like if someone runs a business and he has debtors amounting to rs 1000. he feels that on the time of receiving payments he will have to give some discount.so the total amount of discounts say rs 100 is said to provision for discount on debtors.

Answer 2

Answer:

cash discount is allowed by suppliers to the customers for the prompt payment of ( amount due either on or before due date) .A provison is created on sundry debtors for allowing such discount it is called provision for discount on debtors