Alaka who owed Saka #15,000, settled his debt after deducting cash discount of 10percent. To record the discount in the book of Saka, debit
-
A.
discount recieved account and credit Alaka’s account -
B.
Alaka’s account and credit discount recieved account -
C.
Saka’s account and credit discount recieved account -
D.
discount allowed account and credit Alaka’s account
Correct Answer: Option D
Explanation
Debit cash account and credit discount allowed account