FAsuspense account

You need to open 3 T for Discounts received account, Discount allowed account and Suspense account.
The first entry is the wrong entry for Discounts allowed and received that means credit disc. received for 3840 and debit disc. allowed for 2960.
To correct the 3840 entry you need to make an entry debit 3840 disc, received and credit suspense account for 3840. This one fixed the error. now you need to make the correct entry so another entry for debit 3840 disc. allowed and credit suspense account. At this point you have in your T for disc. received debit 3840 and credit 3840 , for disc. allowed you have debit 3840 and debit 2960 and for suspense account you have credit 3840*2.
To correct the 2960 entry you need to make an entry debit suspense account , credit disc. allowed. Now post the correct entry , credit disc. received for 2960 debit disc. allowed .
Now you should have in your T account, without the beginning entry ( the wrong entry ) , for disc received debit 3840 credit 2960 , this means debit 880. For disc. allowed you should have debit 3840 credit 2960 this means again debit for 880 and for suspense account you should have debit 2960*2 and credit 3840 *2 this leaves you with a balance of 1760..

That was a smart one man. Keep it up.

@ramonacraciun said: You need to open 3 T for Discounts received account, Discount allowed account and Suspense account.<br /> The first entry is the wrong entry for Discounts allowed and received that means credit disc. received for 3840 and debit disc. allowed for 2960.<br /> To correct the 3840 entry you need to make an entry debit 3840 disc, received and credit suspense account for 3840. This one fixed the error. now you need to make the correct entry so another entry for debit 3840 disc. allowed and credit suspense account. At this point you have in your T for disc. received debit 3840 and credit 3840 , for disc. allowed you have debit 3840 and debit 2960 and for suspense account you have credit 3840*2.<br /> To correct the 2960 entry you need to make an entry debit suspense account , credit disc. allowed. Now post the correct entry , credit disc. received for 2960 debit disc. allowed .<br /> Now you should have in your T account, without the beginning entry ( the wrong entry ) , for disc received debit 3840 credit 2960 , this means debit 880. For disc. allowed you should have debit 3840 credit 2960 this means again debit for 880 and for suspense account you should have debit 2960*2 and credit 3840 *2 this leaves you with a balance of 1760..

Best explanation ever!