Question

Discount Allowed Account will have ____________.

• A. Debit balance
• B. Credit balance
• C. Nil
• D. Debit or credit balance

Answer 1

The correct option is A Debit balance

Discount Allowed is an Expense therefore it is a Nominal Account.
The rule for Nominal Account is

Debit- All increase in expense or losses

Credit- All Increase in Income and Gains
As Discount Allowed is an Expense therefore, it will have debit balance.