O-LevelAccountingVerification of accounting records7707/11 · May/June 2016 · Q111 Mark

A business allowed Lee, a customer, $40 cash discount. The discount was entered in the discount allowed account but omitted from Lee's account. A suspense account was opened. What are the correcting entries?

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Aaccount to be debited: discount allowed, account to be credited: Lee

Baccount to be debited: Lee, account to be credited: discount allowed

Caccount to be debited: Lee, account to be credited: suspense

Daccount to be debited: suspense, account to be credited: Lee

✓ Correct answer

D: account to be debited: suspense, account to be credited: Lee

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Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2016 Paper 1 Variant 1, question 11.

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A business allowed Lee, a customer, $40 cash discount. The discount was entered in the discount allowed account but omitted from Lee's account. A suspense account was opened. What are the correcting entries?

✓ Correct answer

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