PRC-1 · Chapter 2 · Question 39 of 100
In a three-column cash book maintained by 'Sapphire Merchants', what does the memorandum column on the payment (credit) side specifically represent?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Discount Received
Explanation
The payment side of the cash book records money paid out to suppliers. If a supplier grants a discount for early payment, this 'Discount Received' is recorded in the third memorandum column on that same side.
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