Alaka who owed Saka N15,000, settled his debt after deducting cash discount of 10%. To
FINANCIAL
JAMB 2016
Alaka who owed Saka N15,000, settled his debt after deducting cash discount of 10%. To record the discount in the book of Saka, debit
- A. Saka's account and credit discount received account
- B. Alaka's account and credit discount received account
- C. Discount received account and credit Alaka's account
- D. Discount allowed account and credit Alaka's account
Correct Answer: A. Saka's account and credit discount received account
Explanation
Alaka is a debtor to saka we therefore debit saka's cash account and credit allowed account
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