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AE for Payment to Creditors & Discount Received

Discount rece...

Question

Discount received while payment made to the creditors is for the business entity.

A

gain

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B

loss

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C

asset

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D

liability

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Solution

The correct option is A gain
Discount received while payment made to creditors is gain for the business entity as they need to pay a lesser amount than the amount owed.

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