Question

A discount of Rs 750 allowed to a customer has been posted to his account as Rs. 570.
Rectifying entry will be..?​

Answer 1

Answer:

suspense A/cDr. 180

to discount allowed 180

Explanation:

since in the above situation it is a posting error i.e. in the ledger of the customer hence it can be assumed that the discount account has been correctly debited by 750.

the short credit in customer account must be given(750-570=180) and the debit being unknown would be debited to suspense account