Question

Discount allowed of Rs 75 wrongly shown in discount received account. Rectification of Errors

Answer 1

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Answer:

Discount received is usually a Cr entry & Discount allowed Dr, but it was recorded as Discount allowed Cr instead of Discount allowed Dr.

So to vanish discount allowed from the above error, we have to:

Dr Suspense a/c $ 100 ( total amount of the 2 entries)

Cr Discount Received $ 50 ( the correct entry )

Cr Discount Allowed $ 50 ( cancel out Discount Allowed ).

hope this helps.

Answer 2

Answer:

Explanation:

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• Discount allowed a/c dr. 75

• Discount received a/c dr. 75

To suspense a/c cr. 150

(discount allowed wrongly entered

as discount received 75)

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