What is reserve for discount on creditors and debtors?
Shanaya,
The provision for discount on debtors is a certain percentage of debt that is receivable that a firm has decided to allow the customers as discount over the period of time. This is an expense that is booked by the firm against the debts that would be received.
And, the provision for discount on creditors is a certain percentage of amount that is payable by the firm that would receivable as discount from the suppliers over a period of time. This is an income for the firm that is booked by the firm in advance against the debts that are payable.
The provision for discount on debtors is a certain percentage of debt that is receivable that a firm has decided to allow the customers as discount over the period of time. This is an expense that is booked by the firm against the debts that would be received.
And, the provision for discount on creditors is a certain percentage of amount that is payable by the firm that would receivable as discount from the suppliers over a period of time. This is an income for the firm that is booked by the firm in advance against the debts that are payable.