Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

In a three-column cash book, the discount column totals were $\$320$ on the debit side and $\$140$ on the credit side. What entries are recorded when these totals are posted to the nominal ledger?

  • AAccount debited: discounts allowed $\$140$; Account credited: discounts received $\$320$
  • BAccount debited: discounts allowed $\$320$; Account credited: discounts received $\$140$
  • CAccount debited: discounts received $\$140$; Account credited: discounts allowed $\$320$
  • DAccount debited: discounts received $\$320$; Account credited: discounts allowed $\$140$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI