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.
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good day,
I have a query concerning a question that I attempted in suspense accounts.
“A discount of $50 given to a customer had been credited to discounts received.”
The solution was Dr Discount Allowed (2 * $50) $100; Cr Suspense (2 * $50) $100
My question is why there is a Dr of $100 instead of $50?
Please help!
i think solution is DR discount received $50
DR discount allowed $50
CR suspense $100,
ie if it was correctly posted to the receivables ledger@ Joyanne,
Hi.
Discount received is usually a Cr entry & Discount allowed Dr, but it was recorded as Discount allowed Cr instead of Discount allowed Dr.
So to vanish discount allowed from the above error, we have to:
Dr Suspense a/c $ 100 ( total amount of the 2 entries)
Cr Discount Received $ 50 ( the correct entry )
Cr Discount Allowed $ 50 ( cancel out Discount Allowed ).hope this helps. 🙂
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