Alaka who owed Saka #15000 settled his debt after deducting cash discount of 10percent. To record the discount in the book of Saka; debit?

A. discount received account and credit Alaka’s account
B. Alaka’s account and credit discount received account
C. Saka’s account and credit discount received account
D. discount allowed account and credit Alaka’s account

Correct Answer:

Option D – discount allowed account and credit Alaka’s account

Explanation

Debit cash account and credit discount allowed account