• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Discount Allowed

Forums › FIA Forums › FA1 Recording Financial Transactions Forums › Discount Allowed

  • This topic has 3 replies, 3 voices, and was last updated 4 years ago by Ken Garrett.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 10, 2021 at 9:25 am #605401
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Hello sir, I want to ask that we make memorandum columns of Discount Allowed and Received on cashbook. We also make their “T-Accounts” in General Ledgers. So why we call them memorandum accounts as we make double entries (ledger system). We are debiting Discount Allowed T-Account , so definitely, any column in general ledger would be credited for say RLCA.
    Please help me with that. I could not explain my query very well sorry for that.

    January 10, 2021 at 3:29 pm #605425
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    Say a customer owed you 1000 with a 5% discount for prompt payment.

    You receive 950. You check the date of the receipt and see that the discount taken is valid.

    Cash must be debited 950 (that was what was received) and you can credit the customer 950. However, how are you going to record that they have been ‘let off’ the remaining 50? Solution – enter 50 in the memorandum account in the cash book. Credit 50 to the customer (no balance left now on that account), add up the memorandum column and debit that to discounts allowed in the nominal ledger.

    May 4, 2021 at 7:32 am #619600
    ABA375
    Participant
    • Topics: 19
    • Replies: 23
    • ☆

    Hello Mr John,

    Do we have Discount Recieved or Discount Allowed control accounts?

    May 4, 2021 at 9:25 am #619613
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    No – these are not normal. However any settlement discounts received and allowed have to be recognised in the appropriate receivables or payables account and ALSO in the receivables control account and payables control account otherwise the sum of the lists of balances would not reconcile to the control account balances

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Gowri7 on Relevant cash flows for DCF Working capital (examples 2 and 3) – ACCA Financial Management (FM)
  • Govere on The use of ratios and comparisons in auditing
  • John Moffat on Relevant cash flows for DCF Working capital (examples 2 and 3) – ACCA Financial Management (FM)
  • Gowri7 on Relevant cash flows for DCF Working capital (examples 2 and 3) – ACCA Financial Management (FM)
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in