Question

credit balance of arjun's a/c at beginning of the year.​

Answer 1

Answer:

Discount is are two types i.e. discount allowed and discount received.

If a discount is allowed to a customer, this will be debited to discount allowed account. Accounting entry will be as under:

Discount allowed A/c Dr.

To Customer A/c

If discount is received from a supplier, this will be credited to discount received account. Accounting entry will be as under:

Supplier's A/c Dr.

To Discount received A/c

Hence, discount account will have both the balances debit and credit.

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