Discounts Allowed appearing in the Trial Balance are shown _________________.
on the debit side of Profit and Loss A/c
on the debit side of Trading Account
on the credit side of P/L A/c
on the Assets side of the Balance Sheet
A
on the debit side of Trading Account
B
on the credit side of P/L A/c
C
on the debit side of Profit and Loss A/c
D
on the Assets side of the Balance Sheet
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Solution
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Discount allowed is an expense/loss for the company as its settling the accounts of the debtors at lesser price. Hence, it will debited in the P & L A/c as all expenses and losses are debited.
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