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
jamb 2016accounting

The correct answer is A. Saka's account and credit discount received account

Alaka is a debtor to saka we therefore

debit saka's cash account and credit allowed account

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