GCE Financial Accounting 1990 Question 31

Question 31

Cash Book

Cash discount received would be shown in the I. Cash Book II. Discount Received Account III. Supplier's Account

  1. A.I and III only
  2. B.I, II and III
  3. C.III only
  4. D.I and II only
  5. E.II and III only.
Show the answer and explanation

Answer: B (I, II and III)

Explanation

It is noted in the discount column of the cash book, then posted to the supplier's account (debit) and discount received account (credit).