... An example of this is could be when Anson at the end of the month takes £33400 out of the bank for his salary. This would be classed as a drawing as money has been taken out of the bank for personal use and not for the business. It is also placed in the profit and loss account under financed by section. The term Discounts allowed means a reduction in the amount of a payment for an invoice or product. This discount can be given or taken. It could be given by Anson to his customers or Anson's suppliers could give him discount. This is called Discount Allowed and is usually given for the prompt payment of an item/invoice. An example of this would be should Anson pay his invoice with a supplier on the 1st December after receiving it on the 29th November the supplier may give ...

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