Accounting for IGCSE & O level - Accounting Procedures (Section 21 - No. 38)
If a company is granted a discount from a supplier, how does this impact the Purchases Ledger Control Account?
The account is debited.
The account is credited.
The account balance remains unchanged.
The discount is ignored.
Explanation
A discount reduces the amount owed to the supplier, thus decreasing the liability, which means it’s a credit in the account.
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