Cash Discount allowed is recorded in the books of account as follows:A – InterviewSolution

InterviewSolution

1.	Cash Discount allowed is recorded in the books of account as follows:A. Cash Discount is debited to Discount Allowed Account.B. Cash Discount is reduced from the Invoice Price.C. None of the above.D. Any of (a) and (b).
Answer» Correct Answer - A Cash Discount is debited to Discount Allowed Account.

Discussion

No Comment Found

Related InterviewSolutions

At the time of preparation of invoice, which discount is deducted?
State whether the following statements are True or False with reason:Book Keeping records monetary and nonmonetary transactions.
French word ‘Jour’ means …………(a) day(b) month(c) year(d) date
From which language the English word ‘Journal’ is derived? What is meaning it?
Which other name of book of Journal book is known ?(a) Main book(b) Fundamental book(c) Master book(d) King of books
Why rough book is not treated as a component of books of accounts ?
Rough book is also known as ………………. .(a) Tanchan(b) Journal(c) Ledger(d) Collection book
Which one of the following is not treated as a component of books of accounts ?(a) Journal(b) Rough book(c) Subsidiary book(d) Journal proper
What is the object of preparing an account?
Give two examples of Nominal Accounts.