Tag: Credit Purchases

What is the correct treatment of a trade discount received from a credit supplier?

Select ONE answer:

1. Recorded in the purchases daybook
2. Deducted from the list price with the net amount recorded in the purchases daybook
3. Recorded in the journal
4. Deducted from the invoice total with the net amount recorded in the cash book

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

1. Not correct
2. Correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.