Which of the following entries is correct in respect of reserve for discounts on accounts payable?

Question

TuteeHUB · Accepted Answer

Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c

TuteeHUB · Answer

Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c

TuteeHUB · Answer

Debit Accounts Payable A/c and Credit P&L A/c

TuteeHUB · Answer

Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c

1.	Which of the following entries is correct in respect of reserve for discounts on accounts payable?
A.	Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c
B.	Debit Accounts Payable A/c and Credit P&L A/c
C.	Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
D.	Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c
Answer» D. Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c

Discussion