PRC-1 · Chapter 3 · Question 5 of 100
The total of the 'Discount Allowed' column in the three-column cash book of 'Horizon Enterprises' is posted to which account at the end of the period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit side of the Discount Allowed account in the General Ledger.
Explanation
Discount allowed is an expense to the business. The periodic total of the discount allowed column from the cash book is posted to the debit side of the Discount Allowed account in the General Ledger.
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