Question

cash discount allowed to a debtor should be debited to
debtor ac
discount ac
creditors ac
cash ac​

Answer 1

Answer:

cash a/c ...dr

discount a/c .....dr

to customer a/c

Answer 2

Cash Discount allowed to a debtor should be debited to Discount A/C.

Discount given to debtor is always debited to discount account as discount is given and if there is any discount recieevd then discount account is always credited.

Journal Entry for discount given -

Cash A/C DR

Discount A/C DR

            To Debtor A/C

( Being debtor paid his amount and given cash discount )

Journal Entry for discount recieved -

Creditor A/C DR

          To Discount A/C

           To Cash A/C

( Being discount recieved and payment made to creditor )

Cash Discount is always recorded in the books of account whereas trade discount is not recorded.