Q
Which of the following entries is correct in respect of reserve for discounts on accounts payable?
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A
A. Debit p&l a/c and credit reserve for discount on accounts payable a/c
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B
B. Debit accounts payable a/c and credit p&l a/c
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C
C. Debit reserve for discount on accounts payable a/c and credit p&l a/c
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D
D. Debit reserve for discount on accounts payable a/c and credit accounts payable a/c
Correct Answer:
C. C. Debit reserve for discount on accounts payable a/c and credit p&l a/c
