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JAMB Principles of Accounts 2009 Question 11

Question 11

Cash Book

Cash discount is often recorded on

  1. A.the debit side of the cash book
  2. B.the credit side of the cash book
  3. C.the folio column of the cash book
  4. D.both credit and debit side of the cash book
Show the answer and explanation

Answer: D (both credit and debit side of the cash book)

Explanation

Discount allowed is in a column on the debit side and discount received on the credit side of a three-column cash book.