The total of the Discount Allowed column in the cash book, Rs. 400, was credited to the Discount Received account. The correcting entry is:

Correct answer: A) Debit Discount Allowed Rs. 400, Debit Discount Received Rs. 400, Credit Suspense Rs. 800

Explanation

Discount Allowed should have been a debit. Instead, it was credited to Discount Received, creating an 800 imbalance. The correction debits Discount Allowed (400) and reverses the false credit to Discount Received (debit 400), crediting Suspense for 800.