JAMB Accounting 2021 Objective — Question 20
Question 20 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2021 Objective paper, with the correct answer and a full explanation.
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20. The discount received by an organisation is a. Dr: discount received account Cr: profit and loss account b. Dr: profit and loss account Cr: discount received c. Dr: creditor account Cr: profit and loss account d. Dr: debtors account Cr: profit and loss account
- A. Dr: discount received account Cr: profit and loss account
- B. Dr: profit and loss account Cr: discount received
- C. Dr: creditor account Cr: profit and loss accountCorrect
- D. Dr: debtors account Cr: profit and loss account
Explanation
When an organisation receives discount, the creditor's account is debited and the discount received account (an income) is credited, and it is posted to the credit side since it is an income.
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