Accounting for IGCSE & O level - Accounting Procedures (Section 21 - No. 49)
In the context of a purchases ledger, what is the effect of a discount received from a supplier?
Increases the balance.
Decreases the balance.
Has no impact on the balance.
The discount is debited in the supplier's account.
Explanation
A discount reduces the amount owed, decreasing the balance.
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