SlideShare a Scribd company logo

5.9 Discount Revenues

•Download as PPTX, PDF•
•
VCE Accounting - Michael Allison
VCE Accounting - Michael Allison

A discount revenue arises when a business receives a discount from a creditor to settle an account for less than the full amount owed. There are three key characteristics of a discount revenue: 1) It represents a savings in the outflows of economic benefits for the business as they pay less cash to the creditor, 2) It decreases the liabilities of the business as the amount owed to the creditor is reduced, and 3) It increases the owner's equity of the business. To record a discount revenue, businesses must add a discount revenue column to the cash payments journal and post the total amount from this column as a credit to creditors and debit to discount revenue at the end of the period.

Education
1 of 14
5.9 DISCOUNT REVENUE
Video of this presentation at… YouTube Channel for VCE Accounting
© Michael Allison. Author’s permission required for external use.  A discount revenue means the business received a discount from a creditor to settle their account 5.9 DISCOUNT REVENUE Business $200 $195 Discount Revenue $5 Why is the discount recorded as a revenue? Suppliers
© Michael Allison. Author’s permission required for external use. 5.9 DISCOUNT REVENUE Revenue definition: Revenue is: 1. Inflows of economic benefits or savings in outflows of economic benefits 2. That will either: •  Assets •  Liabilities 3. With the ultimate effect of: •  Owner’s Equity
© Michael Allison. Author’s permission required for external use.  E.g. a business made a $200 cash sale 5.9 DISCOUNT REVENUE Cash Sales Characteristic #1 • There is an inflow of economic benefits • Cash will be received from the sale Characteristic #2  Assets (the Cash at Bank Asset) Characteristic #3  Owner’s Equity Cash at Bank [A] 31/1 Cash 200 Sales [R] 31/1 Cash 200 Cash at Bank [A] 31/1 Sales 200 Sales [R] 31/1 Cash 200 31/1 Cash 200
© Michael Allison. Author’s permission required for external use.  E.g. a business received a $5 discount from a creditor off an account of $200 5.9 DISCOUNT REVENUE Outflows of economic benefits Outflows of economic benefits With no discount With $5 discount $200 $195 • Because of the discount, the firm will pay less cash (economic benefits) • Hence, there will be a savings in outflows of economic benefits
© Michael Allison. Author’s permission required for external use.  E.g. a business received a $5 discount from a creditor off an account of $200 5.9 DISCOUNT REVENUE Characteristic #1 Characteristic #2 Characteristic #3 Discount revenue • There is a savings in outflows of economic benefits • The firm pays less cash to creditors  Liabilities (the Creditors Liability)  Owner’s Equity Creditors [L] 31/1 Cash 200 Cash [A] 31/1 Cash 200 Creditors [L] 31/1 Cash/Disc 200 Cash [A] 31/1 Cash 200 31/1 Creditors 195 Discount Revenue [R] 31/1 Cash 200 Discount Revenue [R] 31/1 Debtors 5 31/1 Creditors 5 Debit Credit Liabilities   Debit Credit Liabilities   Debit Credit Revenues   Debit Credit Revenues   Debit Credit Assets   Debit Credit Assets  
© Michael Allison. Author’s permission required for external use.  Comparison of cash sales versus discount revenue Cash sales Discount revenue Characteristic #1 • There is an inflow of economic benefits • Cash will be received from the sale • There is a savings in outflows of economic benefits • The firm pays less cash to creditors Characteristic #2  Assets (the Cash Asset)  Liabilities (the Creditors Liability) Characteristic #3  Owner’s Equity  Owner’s Equity 5.9 DISCOUNT REVENUE
© Michael Allison. Author’s permission required for external use.  This requires a new column to be added to the Cash Payments Journal Discount Revenue+ =Cash paid Total owed to Creditor 5.9 DISCOUNT REVENUE $5+ =$195 $200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200
© Michael Allison. Author’s permission required for external use.  How to use the columns?  Example 1: the firm paid a creditor $200 of its account  Example 2: the firm paid $180 off its account and was given a $20 discount  Example 3: the firm paid $150 off its account and was given a $50 discount Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 200 0 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 200 0 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 180 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 180 20 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 180 20 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 150 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 150 50 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 150 50 200 5.9 DISCOUNT REVENUE
© Michael Allison. Author’s permission required for external use.  At the end of the period, the discount revenue column must be “posted” to the General Ledger Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 9 Apr U. Hughes 89 1170 30 1200 28 Apr J. Kirk 90 590 60 650 30 Apr Totals 1760 90 1850 Discount Revenue [R] 30/4 Creditors 90 Creditors [L] 30/4 Discount revenue 90 30/4 Cash 1760 Cash [A] 30/4 Creditors 1760 Creditors [L] 30/4 Cash/Discount revenue 1850 5.9 DISCOUNT REVENUE Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 9 Apr U. Hughes 89 1170 30 1200 28 Apr J. Kirk 90 590 60 650 30 Apr Totals 1760 90 1850 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 9 Apr U. Hughes 89 1170 30 1200 28 Apr J. Kirk 90 590 60 650 30 Apr Totals 1760 90 1850 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 9 Apr U. Hughes 89 1170 30 1200 28 Apr J. Kirk 90 590 60 650 30 Apr Totals 1760 90 1850 or…
© Michael Allison. Author’s permission required for external use.  The Bank column must equal the total of all other columns minus the Discount Revenue column Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Bank = Creditors Control Discount Revenue All other Special Columns Sundries- + + 5290 = 1250 250 1500 2400- + + GST+ 390+ Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 5.9 DISCOUNT REVENUE
© Michael Allison. Author’s permission required for external use.  Summary of posting for the Cash Payments Journal… CrCr Dr Dr Dr Dr Dr Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 30 Apr Totals 15850 150 1700 4000 8500 1000 800 5.9 DISCOUNT REVENUE
© Michael Allison. Author’s permission required for external use. TASK In-class Homework SQ15 X Ex5.5 X Ex5.7Ex5.6

Recommended

Chapter 4: The Adjustment Process
Chapter 4: The Adjustment ProcessChapter 4: The Adjustment Process
Chapter 4: The Adjustment ProcessTara Kissel, M.Ed
 
Accounting!!!!!!!
Accounting!!!!!!!Accounting!!!!!!!
Accounting!!!!!!!stefanie
 
Solution manual chapter 3 fap
Solution manual chapter 3 fapSolution manual chapter 3 fap
Solution manual chapter 3 fapFaiz Ahmed
 
principles of accounting quiz review.docx
principles of accounting quiz review.docxprinciples of accounting quiz review.docx
principles of accounting quiz review.docxTHANHHTUAN
 
Chapter 2 - Balance Sheets Test
Chapter 2 - Balance Sheets TestChapter 2 - Balance Sheets Test
Chapter 2 - Balance Sheets TestVCE Accounting - Michael Allison
 
Tally-maintaining group company in tally
Tally-maintaining group company in tallyTally-maintaining group company in tally
Tally-maintaining group company in tallyMD. Monzurul Karim Shanchay
 
Financial accounting icab chapter 3 cash flow statements
Financial accounting icab chapter 3 cash flow statementsFinancial accounting icab chapter 3 cash flow statements
Financial accounting icab chapter 3 cash flow statementsSazzad Hossain, ITP, MBA, CSCA™
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow Statementnitinji1980
 

Recommended

Chapter 4: The Adjustment Process
Chapter 4: The Adjustment ProcessChapter 4: The Adjustment Process
Chapter 4: The Adjustment ProcessTara Kissel, M.Ed
 
Accounting!!!!!!!
Accounting!!!!!!!Accounting!!!!!!!
Accounting!!!!!!!stefanie
 
Solution manual chapter 3 fap
Solution manual chapter 3 fapSolution manual chapter 3 fap
Solution manual chapter 3 fapFaiz Ahmed
 
principles of accounting quiz review.docx
principles of accounting quiz review.docxprinciples of accounting quiz review.docx
principles of accounting quiz review.docxTHANHHTUAN
 
Chapter 2 - Balance Sheets Test
Chapter 2 - Balance Sheets TestChapter 2 - Balance Sheets Test
Chapter 2 - Balance Sheets TestVCE Accounting - Michael Allison
 
Tally-maintaining group company in tally
Tally-maintaining group company in tallyTally-maintaining group company in tally
Tally-maintaining group company in tallyMD. Monzurul Karim Shanchay
 
Financial accounting icab chapter 3 cash flow statements
Financial accounting icab chapter 3 cash flow statementsFinancial accounting icab chapter 3 cash flow statements
Financial accounting icab chapter 3 cash flow statementsSazzad Hossain, ITP, MBA, CSCA™
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow Statementnitinji1980
 
Careers in accounting
Careers in accountingCareers in accounting
Careers in accountingMohammad Sajjad Hosen Roki
 
Analyzing and Recording Transactions
Analyzing and Recording Transactions Analyzing and Recording Transactions
Analyzing and Recording Transactions Tara Kissel, M.Ed
 
Difference between financial,cost and management accounting
Difference between financial,cost and management accountingDifference between financial,cost and management accounting
Difference between financial,cost and management accountingmidhun chandran
 
CAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesCAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesSaurabh Rai
 
Financial accounting icab chapter 14 group accounts disposals
Financial accounting icab chapter 14 group accounts disposalsFinancial accounting icab chapter 14 group accounts disposals
Financial accounting icab chapter 14 group accounts disposalsSazzad Hossain, ITP, MBA, CSCA™
 
Cash flow statement
Cash flow statementCash flow statement
Cash flow statementSamuel Maniraj
 
Analysis of Financial Statements
Analysis of Financial StatementsAnalysis of Financial Statements
Analysis of Financial StatementsNEETHU S JAYAN
 
ANALYSIS OF FINANCIAL STATEMENTS ch# 03
ANALYSIS OF FINANCIAL STATEMENTS ch# 03ANALYSIS OF FINANCIAL STATEMENTS ch# 03
ANALYSIS OF FINANCIAL STATEMENTS ch# 03KaleemSarwar2
 
Role of an accountant
Role of an accountantRole of an accountant
Role of an accountantpankajmaini
 
Accounting for non profit organisation
Accounting for non profit organisationAccounting for non profit organisation
Accounting for non profit organisationNaveenSingh584098
 
Internal and external auditing in private school
Internal and external auditing in private schoolInternal and external auditing in private school
Internal and external auditing in private schoolJonna May Berci
 
11.2 Format of the Income Statement
11.2 Format of the Income Statement11.2 Format of the Income Statement
11.2 Format of the Income StatementVCE Accounting - Michael Allison
 
Analysis of financial statements
Analysis of financial statementsAnalysis of financial statements
Analysis of financial statementsAdil Shaikh
 
What Is Debit and Credit
What Is Debit and CreditWhat Is Debit and Credit
What Is Debit and CreditTrendStatic Corporation
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow StatementAnkit Kumar
 
Accounting basics
Accounting basicsAccounting basics
Accounting basicsRITESH KUMAR SINGH
 
Advanced Accounting
Advanced Accounting Advanced Accounting
Advanced Accounting Abdulkadir Molla
 
Profitability ratios
Profitability ratiosProfitability ratios
Profitability ratiosN A M COLLEGE KALLIKKANDY
 
Ledger
LedgerLedger
LedgerJosephin Remitha M
 
Presentation on Accounting Principles
Presentation on Accounting Principles Presentation on Accounting Principles
Presentation on Accounting Principles Zakir Khan
 
Stratégies d'influence, le décryptage de Pascal Gauchon.
Stratégies d'influence, le décryptage de Pascal Gauchon.Stratégies d'influence, le décryptage de Pascal Gauchon.
Stratégies d'influence, le décryptage de Pascal Gauchon.Bruno Racouchot
 
Top ten engagement strategies cards
Top ten engagement strategies cardsTop ten engagement strategies cards
Top ten engagement strategies cardsWhitney Adams
 

More Related Content

What's hot

Analyzing and Recording Transactions
Analyzing and Recording Transactions Analyzing and Recording Transactions
Analyzing and Recording Transactions Tara Kissel, M.Ed
 
Difference between financial,cost and management accounting
Difference between financial,cost and management accountingDifference between financial,cost and management accounting
Difference between financial,cost and management accountingmidhun chandran
 
CAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesCAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesSaurabh Rai
 
Financial accounting icab chapter 14 group accounts disposals
Financial accounting icab chapter 14 group accounts disposalsFinancial accounting icab chapter 14 group accounts disposals
Financial accounting icab chapter 14 group accounts disposalsSazzad Hossain, ITP, MBA, CSCA™
 
Analysis of Financial Statements
Analysis of Financial StatementsAnalysis of Financial Statements
Analysis of Financial StatementsNEETHU S JAYAN
 
ANALYSIS OF FINANCIAL STATEMENTS ch# 03
ANALYSIS OF FINANCIAL STATEMENTS ch# 03ANALYSIS OF FINANCIAL STATEMENTS ch# 03
ANALYSIS OF FINANCIAL STATEMENTS ch# 03KaleemSarwar2
 
Role of an accountant
Role of an accountantRole of an accountant
Role of an accountantpankajmaini
 
Accounting for non profit organisation
Accounting for non profit organisationAccounting for non profit organisation
Accounting for non profit organisationNaveenSingh584098
 
Internal and external auditing in private school
Internal and external auditing in private schoolInternal and external auditing in private school
Internal and external auditing in private schoolJonna May Berci
 
Analysis of financial statements
Analysis of financial statementsAnalysis of financial statements
Analysis of financial statementsAdil Shaikh
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow StatementAnkit Kumar
 
Presentation on Accounting Principles
Presentation on Accounting Principles Presentation on Accounting Principles
Presentation on Accounting Principles Zakir Khan
 

What's hot (20)

Careers in accounting
Careers in accountingCareers in accounting
Careers in accounting
 
Analyzing and Recording Transactions
Analyzing and Recording Transactions Analyzing and Recording Transactions
Analyzing and Recording Transactions
 
Difference between financial,cost and management accounting
Difference between financial,cost and management accountingDifference between financial,cost and management accounting
Difference between financial,cost and management accounting
 
CAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesCAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit Techniques
 
Financial accounting icab chapter 14 group accounts disposals
Financial accounting icab chapter 14 group accounts disposalsFinancial accounting icab chapter 14 group accounts disposals
Financial accounting icab chapter 14 group accounts disposals
 
Cash flow statement
Cash flow statementCash flow statement
Cash flow statement
 
Analysis of Financial Statements
Analysis of Financial StatementsAnalysis of Financial Statements
Analysis of Financial Statements
 
ANALYSIS OF FINANCIAL STATEMENTS ch# 03
ANALYSIS OF FINANCIAL STATEMENTS ch# 03ANALYSIS OF FINANCIAL STATEMENTS ch# 03
ANALYSIS OF FINANCIAL STATEMENTS ch# 03
 
Role of an accountant
Role of an accountantRole of an accountant
Role of an accountant
 
Accounting for non profit organisation
Accounting for non profit organisationAccounting for non profit organisation
Accounting for non profit organisation
 
Internal and external auditing in private school
Internal and external auditing in private schoolInternal and external auditing in private school
Internal and external auditing in private school
 
11.2 Format of the Income Statement
11.2 Format of the Income Statement11.2 Format of the Income Statement
11.2 Format of the Income Statement
 
Analysis of financial statements
Analysis of financial statementsAnalysis of financial statements
Analysis of financial statements
 
What Is Debit and Credit
What Is Debit and CreditWhat Is Debit and Credit
What Is Debit and Credit
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow Statement
 
Accounting basics
Accounting basicsAccounting basics
Accounting basics
 
Advanced Accounting
Advanced Accounting Advanced Accounting
Advanced Accounting
 
Profitability ratios
Profitability ratiosProfitability ratios
Profitability ratios
 
Ledger
LedgerLedger
Ledger
 
Presentation on Accounting Principles
Presentation on Accounting Principles Presentation on Accounting Principles
Presentation on Accounting Principles
 

Viewers also liked

Stratégies d'influence, le décryptage de Pascal Gauchon.
Stratégies d'influence, le décryptage de Pascal Gauchon.Stratégies d'influence, le décryptage de Pascal Gauchon.
Stratégies d'influence, le décryptage de Pascal Gauchon.Bruno Racouchot
 
Top ten engagement strategies cards
Top ten engagement strategies cardsTop ten engagement strategies cards
Top ten engagement strategies cardsWhitney Adams
 
500 euros el_valor_de_les_persones
500 euros el_valor_de_les_persones500 euros el_valor_de_les_persones
500 euros el_valor_de_les_personesFerran Garcia
 
Vecteurs d'influence et débats d'idées : le décryptage de Nicolas Tenzer
Vecteurs d'influence et débats d'idées : le décryptage de Nicolas TenzerVecteurs d'influence et débats d'idées : le décryptage de Nicolas Tenzer
Vecteurs d'influence et débats d'idées : le décryptage de Nicolas TenzerBruno Racouchot
 
Communication & influence n°41 (02/2013) - Guerre économique, temps durs et i...
Communication & influence n°41 (02/2013) - Guerre économique, temps durs et i...Communication & influence n°41 (02/2013) - Guerre économique, temps durs et i...
Communication & influence n°41 (02/2013) - Guerre économique, temps durs et i...Bruno Racouchot
 
Top ten math stations cards
Top ten math stations cardsTop ten math stations cards
Top ten math stations cardsWhitney Adams
 
Communication & influence n°43 (avril 2013) - La Légion étrangère entre hard ...
Communication & influence n°43 (avril 2013) - La Légion étrangère entre hard ...Communication & influence n°43 (avril 2013) - La Légion étrangère entre hard ...
Communication & influence n°43 (avril 2013) - La Légion étrangère entre hard ...Bruno Racouchot
 
Liberté d'expression, débats d'idées et jeux d'influence : le décryptage de l...
Liberté d'expression, débats d'idées et jeux d'influence : le décryptage de l...Liberté d'expression, débats d'idées et jeux d'influence : le décryptage de l...
Liberté d'expression, débats d'idées et jeux d'influence : le décryptage de l...Bruno Racouchot
 

Viewers also liked (8)

Stratégies d'influence, le décryptage de Pascal Gauchon.
Stratégies d'influence, le décryptage de Pascal Gauchon.Stratégies d'influence, le décryptage de Pascal Gauchon.
Stratégies d'influence, le décryptage de Pascal Gauchon.
 
Top ten engagement strategies cards
Top ten engagement strategies cardsTop ten engagement strategies cards
Top ten engagement strategies cards
 
500 euros el_valor_de_les_persones
500 euros el_valor_de_les_persones500 euros el_valor_de_les_persones
500 euros el_valor_de_les_persones
 
Vecteurs d'influence et débats d'idées : le décryptage de Nicolas Tenzer
Vecteurs d'influence et débats d'idées : le décryptage de Nicolas TenzerVecteurs d'influence et débats d'idées : le décryptage de Nicolas Tenzer
Vecteurs d'influence et débats d'idées : le décryptage de Nicolas Tenzer
 
Communication & influence n°41 (02/2013) - Guerre économique, temps durs et i...
Communication & influence n°41 (02/2013) - Guerre économique, temps durs et i...Communication & influence n°41 (02/2013) - Guerre économique, temps durs et i...
Communication & influence n°41 (02/2013) - Guerre économique, temps durs et i...
 
Top ten math stations cards
Top ten math stations cardsTop ten math stations cards
Top ten math stations cards
 
Communication & influence n°43 (avril 2013) - La Légion étrangère entre hard ...
Communication & influence n°43 (avril 2013) - La Légion étrangère entre hard ...Communication & influence n°43 (avril 2013) - La Légion étrangère entre hard ...
Communication & influence n°43 (avril 2013) - La Légion étrangère entre hard ...
 
Liberté d'expression, débats d'idées et jeux d'influence : le décryptage de l...
Liberté d'expression, débats d'idées et jeux d'influence : le décryptage de l...Liberté d'expression, débats d'idées et jeux d'influence : le décryptage de l...
Liberté d'expression, débats d'idées et jeux d'influence : le décryptage de l...
 

Similar to 5.9 Discount Revenues

Analyzing Transactions
Analyzing TransactionsAnalyzing Transactions
Analyzing TransactionsShah G
 
Principal accounting - Ch02 analyzing transaction
Principal accounting - Ch02 analyzing transactionPrincipal accounting - Ch02 analyzing transaction
Principal accounting - Ch02 analyzing transactionArfan Fahmi
 
Davenport university acct 510 chapter 4 part 10
Davenport university acct 510 chapter 4 part 10Davenport university acct 510 chapter 4 part 10
Davenport university acct 510 chapter 4 part 10Olivia Fournier
 
Introduction to Financial statements - Accounting
Introduction to Financial statements - AccountingIntroduction to Financial statements - Accounting
Introduction to Financial statements - AccountingFaHaD .H. NooR
 

Similar to 5.9 Discount Revenues (20)

5.8 Discount Expenses
5.8 Discount Expenses5.8 Discount Expenses
5.8 Discount Expenses
 
5.6 Posting the Cash Payments Journal
5.6 Posting the Cash Payments Journal5.6 Posting the Cash Payments Journal
5.6 Posting the Cash Payments Journal
 
4.5 Balancing Ledgers
4.5 Balancing Ledgers4.5 Balancing Ledgers
4.5 Balancing Ledgers
 
5.4 Posting the Cash Receipts Journal
5.4 Posting the Cash Receipts Journal5.4 Posting the Cash Receipts Journal
5.4 Posting the Cash Receipts Journal
 
10.4 The closing process
10.4 The closing process10.4 The closing process
10.4 The closing process
 
8.3 Settling the firm’s GST account
8.3 Settling the firm’s GST account8.3 Settling the firm’s GST account
8.3 Settling the firm’s GST account
 
4.3 The Rules for Assets, Liabilities and Owner's Equity
4.3 The Rules for Assets, Liabilities and Owner's Equity4.3 The Rules for Assets, Liabilities and Owner's Equity
4.3 The Rules for Assets, Liabilities and Owner's Equity
 
Whbm05
Whbm05Whbm05
Whbm05
 
Whbm05
Whbm05Whbm05
Whbm05
 
Whbm05
Whbm05Whbm05
Whbm05
 
Whbm05 140301020034-phpapp02
Whbm05 140301020034-phpapp02Whbm05 140301020034-phpapp02
Whbm05 140301020034-phpapp02
 
Analyzing Transactions
Analyzing TransactionsAnalyzing Transactions
Analyzing Transactions
 
7.4 Situation 1 - Commencing a new business
7.4 Situation 1 - Commencing a new business7.4 Situation 1 - Commencing a new business
7.4 Situation 1 - Commencing a new business
 
Principal accounting - Ch02 analyzing transaction
Principal accounting - Ch02 analyzing transactionPrincipal accounting - Ch02 analyzing transaction
Principal accounting - Ch02 analyzing transaction
 
8.2 The GST Clearing account
8.2 The GST Clearing account8.2 The GST Clearing account
8.2 The GST Clearing account
 
21.2 The Budgeted Cash Flow Statement
21.2 The Budgeted Cash Flow Statement21.2 The Budgeted Cash Flow Statement
21.2 The Budgeted Cash Flow Statement
 
ch04.ppt
ch04.pptch04.ppt
ch04.ppt
 
Davenport university acct 510 chapter 4 part 10
Davenport university acct 510 chapter 4 part 10Davenport university acct 510 chapter 4 part 10
Davenport university acct 510 chapter 4 part 10
 
Introduction to Financial statements - Accounting
Introduction to Financial statements - AccountingIntroduction to Financial statements - Accounting
Introduction to Financial statements - Accounting
 
4.7 Checking the Trial Balance
4.7 Checking the Trial Balance4.7 Checking the Trial Balance
4.7 Checking the Trial Balance
 

More from VCE Accounting - Michael Allison

Chapter 18 Product Costs, Period Costs, NRV - Test Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test SolutionsChapter 18 Product Costs, Period Costs, NRV - Test Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test SolutionsVCE Accounting - Michael Allison
 
Chapter 17 Buying and Selling Non-Current Assets - Test Solutions
Chapter 17 Buying and Selling Non-Current Assets - Test SolutionsChapter 17 Buying and Selling Non-Current Assets - Test Solutions
Chapter 17 Buying and Selling Non-Current Assets - Test SolutionsVCE Accounting - Michael Allison
 

More from VCE Accounting - Michael Allison (20)

VCE Accounting Unit 3-4 Exam Revision Tests
VCE Accounting Unit 3-4 Exam Revision TestsVCE Accounting Unit 3-4 Exam Revision Tests
VCE Accounting Unit 3-4 Exam Revision Tests
 
Chapter 22 Analysis and Interpretation - Test 2 Solutions
Chapter 22 Analysis and Interpretation - Test 2 SolutionsChapter 22 Analysis and Interpretation - Test 2 Solutions
Chapter 22 Analysis and Interpretation - Test 2 Solutions
 
Chapter 22 Analysis and Interpretation - Test 2
Chapter 22 Analysis and Interpretation - Test 2Chapter 22 Analysis and Interpretation - Test 2
Chapter 22 Analysis and Interpretation - Test 2
 
Chapter 22 Analysis and Interpretation - Test 1
Chapter 22 Analysis and Interpretation - Test 1Chapter 22 Analysis and Interpretation - Test 1
Chapter 22 Analysis and Interpretation - Test 1
 
Chapter 22 Analysis and Interpretation - Test 1 Solutions
Chapter 22 Analysis and Interpretation - Test 1 SolutionsChapter 22 Analysis and Interpretation - Test 1 Solutions
Chapter 22 Analysis and Interpretation - Test 1 Solutions
 
Chapter 21 Budgeting - Test 2 Solutions
Chapter 21 Budgeting - Test 2 SolutionsChapter 21 Budgeting - Test 2 Solutions
Chapter 21 Budgeting - Test 2 Solutions
 
Chapter 21 Budgeting - Test 2
Chapter 21 Budgeting - Test 2Chapter 21 Budgeting - Test 2
Chapter 21 Budgeting - Test 2
 
Chapter 21 Budgeting - Test 1
Chapter 21 Budgeting - Test 1Chapter 21 Budgeting - Test 1
Chapter 21 Budgeting - Test 1
 
Chapter 21 Budgeting - Test 1 Solutions
Chapter 21 Budgeting - Test 1 SolutionsChapter 21 Budgeting - Test 1 Solutions
Chapter 21 Budgeting - Test 1 Solutions
 
Chapter 19 Prepaid and Accrued Revenues - Test
Chapter 19 Prepaid and Accrued Revenues - TestChapter 19 Prepaid and Accrued Revenues - Test
Chapter 19 Prepaid and Accrued Revenues - Test
 
Chapter 18 Product Costs, Period Costs, NRV - Test Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test SolutionsChapter 18 Product Costs, Period Costs, NRV - Test Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test Solutions
 
Chapter 18 Product Costs, Period Costs, NRV - Test
Chapter 18 Product Costs, Period Costs, NRV - TestChapter 18 Product Costs, Period Costs, NRV - Test
Chapter 18 Product Costs, Period Costs, NRV - Test
 
Chapter 17 Buying and Selling Non-Current Assets - Test Solutions
Chapter 17 Buying and Selling Non-Current Assets - Test SolutionsChapter 17 Buying and Selling Non-Current Assets - Test Solutions
Chapter 17 Buying and Selling Non-Current Assets - Test Solutions
 
Chapter 17 Buying and Selling Non-Current Assets - Test
Chapter 17 Buying and Selling Non-Current Assets - TestChapter 17 Buying and Selling Non-Current Assets - Test
Chapter 17 Buying and Selling Non-Current Assets - Test
 
Chapter 16 Reducing Balance Depreciation - Test Solutions
Chapter 16 Reducing Balance Depreciation - Test SolutionsChapter 16 Reducing Balance Depreciation - Test Solutions
Chapter 16 Reducing Balance Depreciation - Test Solutions
 
Chapter 16 Reducing Balance Depreciation - Test
Chapter 16 Reducing Balance Depreciation - TestChapter 16 Reducing Balance Depreciation - Test
Chapter 16 Reducing Balance Depreciation - Test
 
Chapter 15 Accounting for Returns - Test Solutions
Chapter 15 Accounting for Returns - Test SolutionsChapter 15 Accounting for Returns - Test Solutions
Chapter 15 Accounting for Returns - Test Solutions
 
Chapter 15 Accounting for Returns - Test
Chapter 15 Accounting for Returns - TestChapter 15 Accounting for Returns - Test
Chapter 15 Accounting for Returns - Test
 
Chapter 14 Prepaid and Accrued Expenses - Test Solutions
Chapter 14 Prepaid and Accrued Expenses - Test SolutionsChapter 14 Prepaid and Accrued Expenses - Test Solutions
Chapter 14 Prepaid and Accrued Expenses - Test Solutions
 
Chapter 14 Prepaid and Accrued Expenses - Test
Chapter 14 Prepaid and Accrued Expenses - TestChapter 14 Prepaid and Accrued Expenses - Test
Chapter 14 Prepaid and Accrued Expenses - Test
 

Recently uploaded

ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...JhezDiaz1
 
Procuring digital preservation CAN be quick and painless with our new dynamic...
Procuring digital preservation CAN be quick and painless with our new dynamic...Procuring digital preservation CAN be quick and painless with our new dynamic...
Procuring digital preservation CAN be quick and painless with our new dynamic...Jisc
 
ANG SEKTOR NG agrikultura.pptx QUARTER 4
ANG SEKTOR NG agrikultura.pptx QUARTER 4ANG SEKTOR NG agrikultura.pptx QUARTER 4
ANG SEKTOR NG agrikultura.pptx QUARTER 4MiaBumagat1
 
Difference Between Search & Browse Methods in Odoo 17
Difference Between Search & Browse Methods in Odoo 17Difference Between Search & Browse Methods in Odoo 17
Difference Between Search & Browse Methods in Odoo 17Celine George
 
Q4 English4 Week3 PPT Melcnmg-based.pptx
Q4 English4 Week3 PPT Melcnmg-based.pptxQ4 English4 Week3 PPT Melcnmg-based.pptx
Q4 English4 Week3 PPT Melcnmg-based.pptxnelietumpap1
 
How to Add Barcode on PDF Report in Odoo 17
How to Add Barcode on PDF Report in Odoo 17How to Add Barcode on PDF Report in Odoo 17
How to Add Barcode on PDF Report in Odoo 17Celine George
 
Choosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for ParentsChoosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for Parentsnavabharathschool99
 
Gas measurement O2,Co2,& ph) 04/2024.pptx
Gas measurement O2,Co2,& ph) 04/2024.pptxGas measurement O2,Co2,& ph) 04/2024.pptx
Gas measurement O2,Co2,& ph) 04/2024.pptxDr.Ibrahim Hassaan
 
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...Nguyen Thanh Tu Collection
 
ENGLISH6-Q4-W3.pptxqurter our high choom
ENGLISH6-Q4-W3.pptxqurter our high choomENGLISH6-Q4-W3.pptxqurter our high choom
ENGLISH6-Q4-W3.pptxqurter our high choomnelietumpap1
 
What is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPWhat is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPCeline George
 
Full Stack Web Development Course for Beginners
Full Stack Web Development Course for BeginnersFull Stack Web Development Course for Beginners
Full Stack Web Development Course for BeginnersSabitha Banu
 
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17Celine George
 
Science 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxScience 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxMaryGraceBautista27
 
Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxAshokKarra1
 
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTiammrhaywood
 
DATA STRUCTURE AND ALGORITHM for beginners
DATA STRUCTURE AND ALGORITHM for beginnersDATA STRUCTURE AND ALGORITHM for beginners
DATA STRUCTURE AND ALGORITHM for beginnersSabitha Banu
 

Recently uploaded (20)

ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
 
Procuring digital preservation CAN be quick and painless with our new dynamic...
Procuring digital preservation CAN be quick and painless with our new dynamic...Procuring digital preservation CAN be quick and painless with our new dynamic...
Procuring digital preservation CAN be quick and painless with our new dynamic...
 
ANG SEKTOR NG agrikultura.pptx QUARTER 4
ANG SEKTOR NG agrikultura.pptx QUARTER 4ANG SEKTOR NG agrikultura.pptx QUARTER 4
ANG SEKTOR NG agrikultura.pptx QUARTER 4
 
Difference Between Search & Browse Methods in Odoo 17
Difference Between Search & Browse Methods in Odoo 17Difference Between Search & Browse Methods in Odoo 17
Difference Between Search & Browse Methods in Odoo 17
 
Q4 English4 Week3 PPT Melcnmg-based.pptx
Q4 English4 Week3 PPT Melcnmg-based.pptxQ4 English4 Week3 PPT Melcnmg-based.pptx
Q4 English4 Week3 PPT Melcnmg-based.pptx
 
How to Add Barcode on PDF Report in Odoo 17
How to Add Barcode on PDF Report in Odoo 17How to Add Barcode on PDF Report in Odoo 17
How to Add Barcode on PDF Report in Odoo 17
 
Choosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for ParentsChoosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for Parents
 
Gas measurement O2,Co2,& ph) 04/2024.pptx
Gas measurement O2,Co2,& ph) 04/2024.pptxGas measurement O2,Co2,& ph) 04/2024.pptx
Gas measurement O2,Co2,& ph) 04/2024.pptx
 
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
 
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
TataKelola dan KamSiber Kecerdasan Buatan v022.pdfTataKelola dan KamSiber Kecerdasan Buatan v022.pdf
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
 
ENGLISH6-Q4-W3.pptxqurter our high choom
ENGLISH6-Q4-W3.pptxqurter our high choomENGLISH6-Q4-W3.pptxqurter our high choom
ENGLISH6-Q4-W3.pptxqurter our high choom
 
What is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPWhat is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERP
 
Full Stack Web Development Course for Beginners
Full Stack Web Development Course for BeginnersFull Stack Web Development Course for Beginners
Full Stack Web Development Course for Beginners
 
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
 
Science 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxScience 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptx
 
Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptx
 
YOUVE_GOT_EMAIL_PRELIMS_EL_DORADO_2024.pptx
YOUVE_GOT_EMAIL_PRELIMS_EL_DORADO_2024.pptxYOUVE_GOT_EMAIL_PRELIMS_EL_DORADO_2024.pptx
YOUVE_GOT_EMAIL_PRELIMS_EL_DORADO_2024.pptx
 
LEFT_ON_C'N_ PRELIMS_EL_DORADO_2024.pptx
LEFT_ON_C'N_ PRELIMS_EL_DORADO_2024.pptxLEFT_ON_C'N_ PRELIMS_EL_DORADO_2024.pptx
LEFT_ON_C'N_ PRELIMS_EL_DORADO_2024.pptx
 
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
 
DATA STRUCTURE AND ALGORITHM for beginners
DATA STRUCTURE AND ALGORITHM for beginnersDATA STRUCTURE AND ALGORITHM for beginners
DATA STRUCTURE AND ALGORITHM for beginners
 

5.9 Discount Revenues

  • 2. Video of this presentation at… YouTube Channel for VCE Accounting
  • 3. © Michael Allison. Author’s permission required for external use.  A discount revenue means the business received a discount from a creditor to settle their account 5.9 DISCOUNT REVENUE Business $200 $195 Discount Revenue $5 Why is the discount recorded as a revenue? Suppliers
  • 4. © Michael Allison. Author’s permission required for external use. 5.9 DISCOUNT REVENUE Revenue definition: Revenue is: 1. Inflows of economic benefits or savings in outflows of economic benefits 2. That will either: •  Assets •  Liabilities 3. With the ultimate effect of: •  Owner’s Equity
  • 5. © Michael Allison. Author’s permission required for external use.  E.g. a business made a $200 cash sale 5.9 DISCOUNT REVENUE Cash Sales Characteristic #1 • There is an inflow of economic benefits • Cash will be received from the sale Characteristic #2  Assets (the Cash at Bank Asset) Characteristic #3  Owner’s Equity Cash at Bank [A] 31/1 Cash 200 Sales [R] 31/1 Cash 200 Cash at Bank [A] 31/1 Sales 200 Sales [R] 31/1 Cash 200 31/1 Cash 200
  • 6. © Michael Allison. Author’s permission required for external use.  E.g. a business received a $5 discount from a creditor off an account of $200 5.9 DISCOUNT REVENUE Outflows of economic benefits Outflows of economic benefits With no discount With $5 discount $200 $195 • Because of the discount, the firm will pay less cash (economic benefits) • Hence, there will be a savings in outflows of economic benefits
  • 7. © Michael Allison. Author’s permission required for external use.  E.g. a business received a $5 discount from a creditor off an account of $200 5.9 DISCOUNT REVENUE Characteristic #1 Characteristic #2 Characteristic #3 Discount revenue • There is a savings in outflows of economic benefits • The firm pays less cash to creditors  Liabilities (the Creditors Liability)  Owner’s Equity Creditors [L] 31/1 Cash 200 Cash [A] 31/1 Cash 200 Creditors [L] 31/1 Cash/Disc 200 Cash [A] 31/1 Cash 200 31/1 Creditors 195 Discount Revenue [R] 31/1 Cash 200 Discount Revenue [R] 31/1 Debtors 5 31/1 Creditors 5 Debit Credit Liabilities   Debit Credit Liabilities   Debit Credit Revenues   Debit Credit Revenues   Debit Credit Assets   Debit Credit Assets  
  • 8. © Michael Allison. Author’s permission required for external use.  Comparison of cash sales versus discount revenue Cash sales Discount revenue Characteristic #1 • There is an inflow of economic benefits • Cash will be received from the sale • There is a savings in outflows of economic benefits • The firm pays less cash to creditors Characteristic #2  Assets (the Cash Asset)  Liabilities (the Creditors Liability) Characteristic #3  Owner’s Equity  Owner’s Equity 5.9 DISCOUNT REVENUE
  • 9. © Michael Allison. Author’s permission required for external use.  This requires a new column to be added to the Cash Payments Journal Discount Revenue+ =Cash paid Total owed to Creditor 5.9 DISCOUNT REVENUE $5+ =$195 $200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Co 10 195 5 200
  • 10. © Michael Allison. Author’s permission required for external use.  How to use the columns?  Example 1: the firm paid a creditor $200 of its account  Example 2: the firm paid $180 off its account and was given a $20 discount  Example 3: the firm paid $150 off its account and was given a $50 discount Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 200 0 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 200 0 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 180 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 180 20 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 180 20 200 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 150 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 150 50 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 27 Apr Wholesale Traders 10 150 50 200 5.9 DISCOUNT REVENUE
  • 11. © Michael Allison. Author’s permission required for external use.  At the end of the period, the discount revenue column must be “posted” to the General Ledger Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 9 Apr U. Hughes 89 1170 30 1200 28 Apr J. Kirk 90 590 60 650 30 Apr Totals 1760 90 1850 Discount Revenue [R] 30/4 Creditors 90 Creditors [L] 30/4 Discount revenue 90 30/4 Cash 1760 Cash [A] 30/4 Creditors 1760 Creditors [L] 30/4 Cash/Discount revenue 1850 5.9 DISCOUNT REVENUE Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 9 Apr U. Hughes 89 1170 30 1200 28 Apr J. Kirk 90 590 60 650 30 Apr Totals 1760 90 1850 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 9 Apr U. Hughes 89 1170 30 1200 28 Apr J. Kirk 90 590 60 650 30 Apr Totals 1760 90 1850 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 9 Apr U. Hughes 89 1170 30 1200 28 Apr J. Kirk 90 590 60 650 30 Apr Totals 1760 90 1850 or…
  • 12. © Michael Allison. Author’s permission required for external use.  The Bank column must equal the total of all other columns minus the Discount Revenue column Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Bank = Creditors Control Discount Revenue All other Special Columns Sundries- + + 5290 = 1250 250 1500 2400- + + GST+ 390+ Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 8 Apr Young & Co. 45 1000 250 1250 17 Apr Insurance 46 2640 2400 240 27 Apr Stock 47 1650 1500 150 30 Apr Totals 5290 250 1250 1500 0 2400 390 5.9 DISCOUNT REVENUE
  • 13. © Michael Allison. Author’s permission required for external use.  Summary of posting for the Cash Payments Journal… CrCr Dr Dr Dr Dr Dr Cash Payments Journal Date Details Cheque Number Bank Discount Revenue Creditors Control Stock Control Wages Sundries GST 30 Apr Totals 15850 150 1700 4000 8500 1000 800 5.9 DISCOUNT REVENUE
  • 14. © Michael Allison. Author’s permission required for external use. TASK In-class Homework SQ15 X Ex5.5 X Ex5.7Ex5.6