Three Column Cash Book

Question 1

Cash Discount

Answer 1

These are the reduction in prices of goods and services to encourage customers to pay on time.

Question 2

Discount Allowed

Answer 2

These are cash discounts provided to customers by the business when they pay promptly.

Question 3

Discount Received

Answer 3

These are the cash discounts given to the business by suppliers to encourage early or prompt payment.