Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

When a trial balance fails to balance, the discrepancy is placed in a suspense account. It is then found that a discount received has been debited to the discount allowed account. Which journal entry would rectify this error?

  • ADebit discount received; Credit suspense
  • BDebit discount allowed; Credit suspense
  • CDebit suspense; Credit discount allowed
  • DDebit suspense; Credit discount allowed and discount received

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