JAMB Accounting 2008 Objective — Question 11

Question 11 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2008 Objective paper, with the correct answer and a full explanation.

Abba offered 5% cash discount on goods worth 10,000. The discount allowed account is to be

A. debited with 10,000
B. credited with 10,000
C. debited with 500
D. credited with 500Correct

Explanation

Discount allowed = 5% x N10,000 = N500. Dr: Discount allowed A/c; Cr: Sales ledger A/c.

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