Withdrawal of money and/or goods by the owner from the business for personal use is known as drawings. Drawings reduces the investment of the owners.
After selling the goods on a credit basis the debtors may be given certain deduction in amount due in case if they pay the amount within the stipulated period or earlier. This deduction is given at the time of payment …
Offering deduction of the agreed percentage of list price at the time selling goods is one way of giving a discount. Such a discount is called ‘trade discount’. It is generally offered by manufacturers to wholesalers and wholesalers to retailers. …
Spending money or incurring a liability for some benefit, service, or property received is called expenditure. The purchase of goods, purchase of machinery, purchase of furniture, etc. are examples of expenditure. If the benefit of expenditure is exhausted within a …