Question

The double effect of Provision for discount on debtors is:

• A. It is shown on the debit side of the profit and loss account.
• B. It is shown as a deduction from debtors in the balance sheet.
• C. A & B both
• D. None of the above

Answer 1

The correct option is C

A & B both

It is shown on the debit side of profit and loss account & It is shown as a deduction from the debtors in the balance sheet.