Accounting JAMB

Alaka who owed Saka N15000 settled his debt after deducting a cash discount of 10%. To record the discount in the book of Saka; debit?

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

Correct Answer:

Option A – Saka’s account and credit discount received account

Explanation

Alaka is a debtor to saka we therefore
debit saka’s cash account and credit allowed account

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