CA Foundation Exam > CA Foundation Questions > The total of discounts column on the debit si...
Start Learning for Free
The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to the
- a)credit of the discount allowed account.
- b)debit of the discount received account.
- c)credit of the discount received account.
- d)debit of the discount allowed account.
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
The total of discounts column on the debit side of the cash book, reco...
Explanation:
The discounts received by a business are recorded in the discount allowed account, which is a nominal account. Similarly, the discounts allowed by a business are recorded in the discount received account, which is also a nominal account.
When the customers pay their accounts, they deduct a certain amount of cash discount, which is recorded in the cash book on the debit side under the column “Discounts”. This amount represents the discounts allowed by the business to its customers.
To post the total of discounts column on the debit side of the cash book, we need to consider the following points:
- The cash book is a subsidiary book, which means that all the entries made in it are later posted to the ledger accounts.
- The discounts allowed by the business are recorded on the debit side of the cash book, which means that they need to be credited to the discount allowed account.
- Therefore, the total of discounts column on the debit side of the cash book is posted to the debit side of the discount allowed account.
Conclusion:
Hence, option D (debit of the discount allowed account) is the correct answer.
The discounts received by a business are recorded in the discount allowed account, which is a nominal account. Similarly, the discounts allowed by a business are recorded in the discount received account, which is also a nominal account.
When the customers pay their accounts, they deduct a certain amount of cash discount, which is recorded in the cash book on the debit side under the column “Discounts”. This amount represents the discounts allowed by the business to its customers.
To post the total of discounts column on the debit side of the cash book, we need to consider the following points:
- The cash book is a subsidiary book, which means that all the entries made in it are later posted to the ledger accounts.
- The discounts allowed by the business are recorded on the debit side of the cash book, which means that they need to be credited to the discount allowed account.
- Therefore, the total of discounts column on the debit side of the cash book is posted to the debit side of the discount allowed account.
Conclusion:
Hence, option D (debit of the discount allowed account) is the correct answer.
Free Test
FREE
| Start Free Test |
Community Answer
The total of discounts column on the debit side of the cash book, reco...
Because discount allowed account is a nominal account and discount allowed is a expense to our business and as per the nominal account principal we need to debit all expenses and credit all the incomes and gains therefore we need to give a debit for allowing the discount for the customers
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer?
Question Description
The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer?.
The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer?.
Solutions for The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to thea)credit of the discount allowed account.b)debit of the discount received account.c)credit of the discount received account.d)debit of the discount allowed account.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup