PRC-1 · Chapter 2 · Question 57 of 100
In a three-column cash book, where are settlement discounts received from credit suppliers recorded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) In the discount column on the payment (credit) side.
Explanation
When a business pays a supplier and earns a discount, the payment is recorded on the credit side of the cash book, and the associated discount received is logged in the adjacent memorandum discount column on that same side.
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