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

Debtor`s account

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Provision for doubtful debts account

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Profit & Loss account

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Creditor`s account

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Solution

The correct option is A
Debtor`s account

The correct entry is:
Discount a/c Dr
To Debtor`s account

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Similar questions

By providing for discount on debtors and making provision for doubtful debts, which accounting concept is followed?

Prepare the bad debts account, provision for account, profit and loss account and balance sheet from the following information as on March 31, 2017

	Rs
Debtors	80,000
Bad debts	2,000
Provision for doubtful debts	5,000

Adjustments:

Bad Debts Rs 500 Provision on Debtors @ 3%.

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