Question

e 75 discount allowed by a creditor has been debited to Discount account
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Answer 1

This is a wrong statements.

Because the discount allowed by a creditor is revenue and revenue comes in nominal account.

NOMINAL ACCOUNT:-

• All loses and Expenses → Debit
• All profit and Revenue → Credit

According to the given statement this discount is our revenue and we have to credit it.

I hope this will help you friend.

Answer 2

Explanation:

rectify the following errors