Question 30
Cash BookUse the following information to answer questions 29 to 31.
Kwamenah bought goods worth Le 50,000 from Doe and Sons Limited on the following terms: 3% trade discount; 10% cash discount. Kwamenah returned defective goods worth Le 8,000 the next day and made payment for the remaining goods on the due date.
Kwamenah would record the 10% discount in the
- A.sales journal.
- B.cash book.
- C.purchases journal.
- D.journal proper.
Show the answer and explanation
Answer: B (cash book.)
Explanation
Cash discount is recorded in the discount column of the cash book when payment is made.