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⟩ Tell me should the Cash Discounts GL hit the Balance Sheet as per US accounting concept? If yes, then why and if No, then why?

I believe that cash discounts are taken into P&L and not to the B/S.

The journal would be :

Dr. Bank A/c 90

Dr. Cash Discount given A/c 10

Cr. S. Drs 100

So it is taken into P&L and adjusted in the Net profit itself..

Hence, you add the Net profit with your capital in B/S.

So, net effect is given there.

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