Accounting for IGCSE & O level - Accounting Procedures (Section 23 - No. 27)

What is the impact of a cash discount received from a supplier on the purchases ledger control account?
Increases the balance.
Decreases the balance.
No impact on the balance.
The balance is moved to the capital account.

Explanation

A cash discount reduces the amount the business owes, decreasing the control account.

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