JAMB Accounting 2013 Objective — Question 10
Question 10 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2013 Objective paper, with the correct answer and a full explanation.
Advertisement
Alaka who owed Saka ₦15,000, settled his debt after deducting cash discount of 10%. To record the discount in the book of Saka,
- A. debit discount received account and credit Alaka's account
- B. debit Alaka's account and credit discount received account
- C. debit Saka's account and credit discount received account
- D. debit discount allowed account and credit Alaka's accountCorrect
Explanation
Saka is the creditor to Alaka, and Alaka is a debtor to Saka. Any discount Saka gives Alaka is a discount allowed, treated in Saka's books as: Dr Discount Allowed A/c, Cr Debtors A/c (Alaka).
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.