In case of discount given to customer to whom the goods were sold on credit, which of the following account is debited & credited respectively at the time of receipt of payment?

Customer`s account & discount account

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Discount account & customer`s account

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Sales account & discount account

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Discount account & sales account

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Solution

The correct option is B
Discount account & customer`s account

Discount is an expense for the business & it is debited along with customer's account as claims due from customers have been reduced.

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Similar questions

Is it correct that individual accounts of customers is debited by the respective amount and the total of the sales book is posted to the credit side of the sales account in the general ledger ?

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

A shoe manufacturing company sold shoes worth Rs.10,000 to one of it's customer on credit. Which account should be debited and which account is credited?

Q. Rs. 1,000 being the monthly total of discount allowed to customers was credited to discount account in the ledger. If rectification is done before preparation of trial balance then which of the following is correct?

Q. A book-keeper finds that the debit side of the trial balance is short of ₹ 308 and so for the time being, he balances the side by putting the difference to suspense account. Subsequently, the following errors were disclosed:
(a) An entry for sale of goods for ₹ 102 to Madhav was posted to his account as ₹ 120.
(b) ₹ 100 being the discount allowed to customers were credited to discount received account in the ledger.
(c) ₹ 275 paid by Madhav were credited to Jadav's account.
(d) ₹ 26 appearing in the cash book as paid for the purchase of stationery for office use have not been posted to ledger.
(e) The debit side of purchases account was under-cast by ₹ 100.
You are required to make the necessary journal entries and the suspense account.

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In case of discount given to customer to whom the goods were sold on credit, which of the following account is debited & credited respectively at the time of receipt of payment?

The correct option is B Discount account & customer`s account Discount is an expense for the business & it is debited along with customer's account as claims due from customers have been reduced.

The correct option is B
Discount account & customer`s account

Discount is an expense for the business & it is debited along with customer's account as claims due from customers have been reduced.