PRC-1 · Chapter 3 · Question 69 of 100
The total of the 'Discount Allowed' column in the cash book is Rs. 4,500 for the period. Where is this total posted in the General Ledger?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit side of the Discount Allowed account.
Explanation
Discount allowed is an expense given to customers for early payment. Expenses have debit balances, so the column total is posted to the debit side of the Discount Allowed account.
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