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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?
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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.
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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
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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?
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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?.
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