The discount column of a three column cashbook is not balanced off but periodically transferred to the discount account because discounts
are not important in cashbooks
are cash items only
do not form part of double entry
are used for bank reconciliation
Explanation
No explanation available
Video Explanation
No video available
Post your Contribution
Discussions (8)
I don't agree bcus it jts it own double entry bt dose'nt exist in cashbook in double enttry form.
I agree with the answer, because discount does not form part of the double entry in the cashbook.
i totally agree with this, cos a discount either received or allowed is reduction of price of goods and services usually in percent and must prepared separately, cash book is usually account where both cash and bank entries are recorded and not discount, though it's included in the cash book labeling but it's not sorted out there.
I 2 agree wit, because suspens account measures the different between trial balance untill mistake is being detect....therefore it is not calculated in terms of material but in terms
of cash or bank....so the answere is B
