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Standard XI
Accountancy
Question

Discount Allowed appearing in the Trial Balance are shown:
  1. On the debit side of Profit & Loss A/c
  2. On the debit side of Trading Account
  3. On the Assets side of the Balance Sheet.
  4. None of these

A
On the debit side of Trading Account
B
On the debit side of Profit & Loss A/c
C
None of these
D
On the Assets side of the Balance Sheet.
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Solution
Verified by Toppr

Profit and loss account records the indirect expenses and incomes which is not the main purpose of the business. Expenses are debited and incomes are credited to the profit and loss account. Discount allowed is the part of income which is sacrificed by the firm. It is the incentive given to the debtors for early payments. Since it is a reduction in the revenue of the year, it is shown on the debit side of the profit and loss account

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Similar Questions
Q1

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

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Q2
Which of the following account balance will be shown on debit side of Trial Balance?
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Q3
Which of the following item(s) appearing in the trial balance, should be debited to trading account ?
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Q4
Which item is shown on the debit side of a trial balance?
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Q5
When item is shown on the debit side of a trial balance?
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