Accounting JAMB

The discount column on the left-hand side of cashbook represents a discount?

A. received from a creditor
B. allowed to a debtor
C. received from a debtor
D. allowed to a creditor

Correct Answer:

Option B – allowed to a debtor

Explanation

Allowed to a debtor: the debit side of the cashbook is where all proceeds from sales are recorded and have to be matched with the discount allowed to the debtor /creditor

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