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WAEC Financial Accounting 2016 Question 42

Question 42

Cash Book

The total of the discounts received column in the three column cash book is

  1. A.debited to Discounts Received Account.
  2. B.credited to Discounts Received Account.
  3. C.debited to Discounts Allowed Account.
  4. D.credited to Discounts Allowed Account.
Show the answer and explanation

Answer: B (credited to Discounts Received Account.)

Explanation

Discount received is income, so the column total is credited to the discounts received account.