Question

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Ques: Mohit paid 9800 settlement office account of 10,000 discount allowed will be recorded in

a. cash book
b. journal book
c. both cash book and journal
​

Answer 1

Answer:

both cash book and journal

Answer 2

It is recorded in Journal.

• A journal takes into account all the financial activities of an enterprise, which are further used for various purposes.
• Allowing a discount raises a seller's expenditure, but it decreases the real amount to be obtained from sales.
• The amount of discount is recorded in a journal. The journal entry for the same is -

Cash A/C  

Discount Allowed A/C  

To Debtor’s A/C

( Being the discount allowed)