Provision for Discount on Debtors Account is ______________.

Personal A/c

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Real A/c

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Nominal A/c

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None of these

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Solution

The correct option is A Personal A/c
Personal accounts are related to transactions with the debtors and creditors, hence provision for discount on debtors is a personal A/c.

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Similar questions

Q. While preparing final account, to make provision for discount on debtors. which of the following adjustment entry will be passed?

Provision for Discount on Debtors A/c To Debtors A/c	Dr.
Profit & Loss A/c To Provision for Discount on Debtors A/c	Dr.
Provision for Discount on Debtors A/c To Trading A/c	Dr.
Debtors A/c To provision for Discount on Debtors A/c	Dr.

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

What is the reason for the creation of a provision for discount on debtors?

Q. Classify the following accounts under personal, real or nominal accounts:

(i) Commission Paid	(ii) Commission Received
(iii) Commission Accrued	(iv) Prepaid Salaries
(v) Leasehold Property A/c	(vi) Discount Allowed
(vii) Carriage Inwards A/c	(viii) Life Insurance Corporation of India
(ix) Drawings A/c	(x) Rent Received in Advance
(xi) Debtors	(xii) Sales A/c
(xii) Rent Paid in Advance	(xiv) Bank Overdraft

Q. A Trial Balance contains the following information :

Bad debts	Rs.5,000
Discount allowed	Rs.4,000
Provision for discount on debtors	Rs.2,000
Provision for Doubtful Debts	Rs.5,000
Sundry Debtors	Rs.50,000

At the end of the year, it is desired to maintain a provision for debts at Rs. 4,000 and provision for discount on debtors at Rs.2,000. Sundry Debtors (after provision) will appear in the Balance Sheet at a figure of :

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Provision for Discount on Debtors Account is ______________.

The correct option is A Personal A/cPersonal accounts are related to transactions with the debtors and creditors, hence provision for discount on debtors is a personal A/c.

The correct option is A Personal A/c
Personal accounts are related to transactions with the debtors and creditors, hence provision for discount on debtors is a personal A/c.