PRC-1 · Chapter 3 · Question 70 of 100
The total of the 'Discount Received' column in the cash book is Rs. 3,200. What is the correct posting for this total in the General Ledger?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit the Discount Received account.
Explanation
Discount received is a form of income (or expense reduction) earned for paying suppliers early. Therefore, the total is posted to the credit side of the Discount Received account.
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