A business pays a supplier Rs 30,000 in cash less a 2% cash discount. What is entered in the discount column of the cash book?
Correct answer C. Rs 600 on the credit side
Explanation
The discount is 2% of 30,000 = Rs 600. As it is received when making a payment, it goes in the credit-side discount column, while Rs 29,400 goes in the cash column.
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