PRC-1 · Chapter 8 · Question 31 of 100
Discount received of Rs. 600 was omitted from the Discount Received account in the general ledger, although it was correctly entered in the cash book. What is the correcting journal entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Suspense Rs. 600, Credit Discount Received Rs. 600
Explanation
Because the credit to Discount Received was omitted while the cash book entries were complete, the trial balance lacks a credit. The correction establishes the credit to Discount Received and clears the resulting debit in Suspense.
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