Discount allowed would appear on the

Assessment: WAEC SSCE - Financial Accounting - 1989 (Objective) Subject: Financial Accounting

Question 1 Report

Discount allowed would appear on the
Answer Details
Discount allowed would appear on the credit side of the Sales Ledger Control Account. When a business offers a discount to a customer, it is known as a discount allowed. The discount allowed is deducted from the total amount owed by the customer and is recorded in the Sales Ledger Control Account. This account keeps track of all the transactions made in the sales ledger, including sales, returns, and discounts allowed. Since the discount allowed reduces the amount owed by the customer, it is shown as a credit entry in the Sales Ledger Control Account. In summary, the discount allowed would appear on the credit side of the Sales Ledger Control Account, which keeps track of all the transactions made in the sales ledger, including sales, returns, and discounts allowed.

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