Suspense Account

A discount received is not cash received and therefore it should be recorded in the discounts received column in the cash payments book (if they are using a columnar cash book).

I would not worry too much because columnar cash books are rather old-fashioned and not so likely to be in the exam.

However, if we get a discount from a supplier then the amount paid is less than the invoice amount. We regard the cash paid in the cash payments book and make a note of the discount received in the discounts received column. Then they would take the total of the column and credit discounts received and debit payables.

Here they have made a note in the cash receipts book by mistake, so will have ended up crediting receivables as well as crediting discounts received.

Again, I would not worry too much about columnar cash books and especially about the memorandum discount columns (which is why I do not bother with the discount columns in my free lectures). The free lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.

Your correction is correct.

As far as passing the exam well is concerned it needs three things.

One is obviously to study all the topics well (and I suggest that you watch my freee lectures – they are a complete free course, and if you are watching them then you do not really need the Study Text).

The second is, after finishing studying, to attempt every question in a Revision Kit from one of the ACCA Approved Publishers. Practice at exam standard questions is vital to passing the exam.

The third is to attempt the mock examinations that are in the Revision Kit under exam conditions (to get used to the time pressure in the exam) and to attempt the practice CBE exam on the ACCA website in order to get used to entering the answers on computer.

You are welcome 🙂