Examveda
Examveda

Discount received is recorded on which of the following side of a cash book?

A. Receipts

B. Payments

C. Income

D. Expenditure

Answer: Option B

Solution(By Examveda Team)

Discount Received is a column found on the credit side of the Cash Book. When a creditor is paid and the business receives a discount the discount received and is recorded in the discount received column and the corresponding entry appears as a debit in the creditor’s account.

Join The Discussion

Comments ( 5 )

  1. Ishan Agrawal
    Ishan Agrawal :
    10 months ago

    It Is Option A Only Because The Entry For Discount Received Is Cash a/c Record In Debit Side and Discount a/c Record In Credit Side. So In Cash Book When Cash Will Increase Then It Will Record On Receipts Side i.e. Debit Side of Cash Book.

  2. Waseem Ahsan
    Waseem Ahsan :
    2 years ago

    When we are making payment to creditor we received Discount Received now look for journal Entry
    Creditor A/c Dr
          To Cash A/c
          To Discount Received A/c
    Explanation:
    Dear if we observe cash book along with Dis count Column there are two side Receipt Side And Payment Side on Receipt Side there is a Column of Discount Allowed And On Payment side their is a column of Dis received.

  3. Dharmendra Kumar
    Dharmendra Kumar :
    3 years ago

    Sir, Is A is not a correct answer

  4. San Tosh
    San Tosh :
    4 years ago

    how discount received is an income of the business.

  5. Rajani Kanth
    Rajani Kanth :
    4 years ago

    Cash discount received entry is
    CashA/c Dr
    To Discount received A/c
    Answer A is correct
    Debit side of cash book

Related Questions on Accounting