PRC-1 · Chapter 8 · Question 93 of 100
A 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 was missed but the cash book debit existed, the trial balance lacked 600 in credits. The correction establishes the credit to Discount Received and debits Suspense.
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