Alaka who owed Saka N15,000, settled his debt after deducting cash discount of 10%. To record the discount in the book of Saka, debit
-
Saka's account and credit discount received account
- Alaka's account and credit discount received account
- Discount received account and credit Alaka's account
- Discount allowed account and credit Alaka's account
The correct answer is: A
Explanation
Alaka is a debtor to saka we therefore
debit saka's cash account and credit allowed account