Question

discount of 400/- allowed by kapil, a creditor, has not been entered in the books of account

Answer 1

Answer:

We have to write the rectification entry for the given transaction.

Required entry is as follows:

Kapil's A/c  ...Dr - Rs. 400

    To discount received A/c - Rs. 400

(Being discount allowed by Kapil has not entered in the books of account, now rectified.)

Explanation:

Here we have credited the discount received A/c because it's a revenue and we know that according the rules of debit and credit, all the revenue must be credit.

Kapil's A/c has been debited because the our liability towards Kapil has been decreased up the extent of the amount of discount.