Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 49)
What is the correct accounting treatment for a cash discount received from a supplier?
Debit supplier's account, credit cash
Credit supplier's account, debit discount received
Debit purchases, credit cash
Debit discount received, credit supplier's account
Explanation
A cash discount received reduces the amount owed to the supplier; the discount received is debited and the supplier account is credited.
Comments (0)
