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WAEC Accounting 2016 Objective — Question 42

Question 42 of 50 from the West African Examinations Council (WAEC) Accounting 2016 Objective paper, with the correct answer and a full explanation.

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42. The total of the discounts received column in the three-column cash book is A. debited to Discount Received Account B. credited to Discount Received Account C. debited to Discounts Allowed Account D. credited to Discounts Allowed Account

  • A. debited to Discount Received Account
  • B. credited to Discount Received AccountCorrect
  • C. debited to Discounts Allowed Account
  • D. credited to Discounts Allowed Account

Explanation

Discount received is an income A/c, thus the total money in the discount received column, of the three-column cash book is treated as Dr Purchase control A/c, Cr Discount received A/c.

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