Discount is allowed by Arun to Varun. Which of the following should be the course of action in books of Arun?

Credit Varun A/c and debit discount allowed A/c

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Debit Varun A/c and credit discount received A/c

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Credit Arun A/c and debit discount allowed A/c

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Debit Arun A/c and credit discount received A/c

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Credit Varun A/c and debit discount allowed A/c
Discount allowed is an expense and hence it should be debited and Varun's account should be credit as he is availing discount by Arun.

Entry to be passed :-
Discount allowed A/c Dr.
To Varun's A/c.

Suggest Corrections

Similar questions

Discount allowed to a debtor should be credited to ___.

Q. At the time of forfeiture of shares which were originally issued at a discount, the accounting entry will be
I. A Debit Share capital account with the called-up value of shares forfeited.
II. A Credit Share forfeiture account with the amount received on forfeited shares.
III. A Credit Discount on issue of shares with the amount of discount allowed on forfeited shares,
IV. A Credit Calls-in-arrears with the amount due but not paid on forfeited shares.

Q. The cash discount allowed to a debtor should be credited to __________.

In case of actual discount when provision for discount on debtors is made, the discount account is debited with a corresponding credit in _____account.

Q. Discount charges of Rs.1,000 on discounting a Bill Receivable accepted by consignee are debited to:

Join BYJU'S Learning Program

Discount is allowed by Arun to Varun. Which of the following should be the course of action in books of Arun?

The correct option is A Credit Varun A/c and debit discount allowed A/cDiscount allowed is an expense and hence it should be debited and Varun's account should be credit as he is availing discount by Arun.Entry to be passed :-Discount allowed A/c Dr. To Varun's A/c.

The correct option is A Credit Varun A/c and debit discount allowed A/c
Discount allowed is an expense and hence it should be debited and Varun's account should be credit as he is availing discount by Arun.

Entry to be passed :-
Discount allowed A/c Dr.
To Varun's A/c.