Discount of Rs.300 received was posted to the debit of the Discount Account.
Please rectify and explain.
suspense ac ..... dr 600
to discount allowed ac 600
discount received is a revenue and hence needs to be credited but it was debited
so we credit discount account as well as credit is once more to remove the effect of its wrong debit , therefore discount account is credited by 600.. every credit must have a corresponding debit so we need to debit in order to tally it.. so we debit suspense account by 600...
to discount allowed ac 600
discount received is a revenue and hence needs to be credited but it was debited
so we credit discount account as well as credit is once more to remove the effect of its wrong debit , therefore discount account is credited by 600.. every credit must have a corresponding debit so we need to debit in order to tally it.. so we debit suspense account by 600...