Peri’s bookkeeper made the following mistakes:
1 Discount allowed £3,840 was credited to discounts received account.
2 Discount received £2,960 was debited to discounts allowed account.
3. Discounts were otherwise correctly recorded.
Which of the following journal entries will correct the errors?
Select ONE answer:
- Debit Discount allowed £7,680, Credit Discount received £S,920, Credit Suspense account, £1,760
- Debit Discount allowed £880, Debit Discount received £880, Credit Suspense account £1,760
- Debit Discount allowed £6,800, Credit Discount received £6,800
- Debit Discount allowed £3,840, Credit Discount received £2,960, Credit Suspense account £880
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Notcorrect
- Correct – Start by posting the adjustment in full: Debit £ Discount allowed 3,840 Discount received 3,840 Credit £ Discount allowed 2,960 Discount received 2,960 + Suspense account 1,760
- Not correct
- Not correct
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