A-LevelAccountingThe accounting cycle9706/12 · Oct/Nov 2024 · Q31 Mark

Peter is a credit customer of John. He settles his account of $200. He pays by cheque and receives a cash discount of 5%. Which entries are made in John's books of account to record this transaction?

Aaccount to be debited: bank $190, discount allowed $10; account to be credited: Peter $200

Baccount to be debited: bank $190, discount received $10; account to be credited: Peter $200

Caccount to be debited: Peter $200; account to be credited: bank $190, discount allowed $10

Daccount to be debited: Peter $200; account to be credited: bank $190, discount received $10

✓ Correct answer

A: account to be debited: bank $190, discount allowed $10; account to be credited: Peter $200

Oracle Prep sorts past-paper questions by topic, so you can drill The accounting cycle and see which topics are most likely to come up next.

Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2024 Paper 1 Variant 2, question 3.

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