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Could someone please explain why B is the answer to this question. Thank you in advance.
Bumbly Co extracted the trial balance for the year ended 31 December 20X7. The total of the debits exceeded the
credits by $300.Which of the following could explain the imbalance?
A Sales of $300 were omitted from the sales day book
B Returns inward of $150 were extracted to the debit column of the trial balance
C Discounts received of $150 were extracted to the debit column of the trial balance
D The bank ledger account did not agree with the bank statement by a debit of $300B is not the answer – according to the ACCA’s answer sheet, the answer (correctly) is C!!
Discounts received should be a credit balance. Listing it as a debit balance means that the debit column is 150 too high and the credit column 150 too low – so debits exceed credits by 300.
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