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
-
A.
Saka’s account and credit discount received account -
B.
Alaka’s account and credit discount received account -
C.
Discount received account and credit Alaka’s account -
D.
Discount allowed account and credit Alaka’s account
Correct Answer: Option A
Explanation
Alaka is a debtor to saka we therefore
debit saka’s cash account and credit allowed account