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Question
________will have a normal credit balance?
________will have a normal credit balance?
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Solution
The correct option is B Discount received
Discount are having both types, discount allowed and discount received.
Discount allowed is debited to the expenses account while discount received is considered as income.
An accounting entry is passed as :
Creditors A/c Dr. To Discount received A/c.
Discount received is an income and will show a credit balance.
Discount are having both types, discount allowed and discount received.
Discount allowed is debited to the expenses account while discount received is considered as income.
An accounting entry is passed as :
Creditors A/c Dr.
To Discount received A/c.
Discount received is an income and will show a credit balance.
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