Provision for discount on debtors and provision for discount on creditors?

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1206753

2026-03-03 09:05

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a provision is set up to give discounts to debtors who settle accounts early. as the company are not receiving the full debt they have a provision in place in this eventuality. This is seen as an expense to the business and brings the amount the debtors down. In other Words dr P&L and Cr debtors in balance sheet

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