Accounts (Principles of Accounts)The cash book and discountsJAMB
A cheque for ₦20,000 owed by Kola is received less 5% cash discount. How is it recorded in the cash book?
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Answer: C. ₦19,000 in the bank column and ₦1,000 in the discount column, debit side
The receipt goes on the debit side with the discount allowed beside it.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.