Cash Discount
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MS: Diskaun Tunai · EN: Cash Discount · ZH: 现金折扣
Meaning
A Cash Discount is a price reduction given or received because payment is made promptly or within an agreed period. It is recorded in the discount columns of the Cash Book. Discount Allowed is given to customers (an expense), while Discount Received is obtained from suppliers (revenue).
Example
A customer owes RM1,000 and is given a 5% cash discount (RM50) for paying early, so only RM950 is received. Debit Bank RM950 and Discount Allowed RM50; Credit the debtor's account RM1,000.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4