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Is Cash Discount effect any financial statements ?

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Question added by Fahid Malik , Accountant , Sialkot Dry Port Trust
Date Posted: 2017/03/09
John Shannel Julian
by John Shannel Julian , Business Controller , Philips Lighting India Ltd

It depends upon what is the accounting method you follow. If gross method is followed then it affects your statement of income and financial position. In case of net method there is no effect if our assumption is correct else (if the discount is not taken by your customer) then it affects.