While balancing three column cash book, the discount columns are:
  • a)
    Totaled but not adjusted
  • b)
    Totaled and also adjusted 
  • c)
    Totaled but not balanced
  • d)
    Balanced but not totaled 
Correct answer is option 'C'. Can you explain this answer?

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Answers

Monica D
Mar 03, 2021
Discount column is totaled not balanced. we just total it ,and dont carry the balance to the next period. the respective totals are recorded in discount allowed and discount received accounts. It doesn't sound logical to balance the discount column and treat the difference as discount received or allowed where we actually havent received or allowed such discount. Hence balancing and carrying forward is not required.

Discount column is totaled not balanced. we just total it ,and dont carry the balance to the next period. the respective totals are recorded in discount allowed and discount received accounts. It doesn't sound logical to balance the discount column and treat the difference as discount received or allowed where we actually havent received or allowed such discount. Hence balancing and carrying forward is not required.
Discount column is totaled not balanced. we just total it ,and dont carry the balance to the next period. the respective totals are recorded in discount allowed and discount received accounts. It doesn't sound logical to balance the discount column and treat the difference as discount received or allowed where we actually havent received or allowed such discount. Hence balancing and carrying forward is not required.