In a three-column cash book, the discount columns are:
A. Transferred to suspense account
B. Balanced like cash columns
C. Ignored at month end
D. Totalled but not balanced
Answer: Option D
Solution (By JKSSB Mock Tests)
Discount Allowed and Discount Received are separate nominal accounts. Their columns are only totalled and posted directly to the respective ledger accounts.
If opening capital is Rs 1,00,000, closing capital is Rs 1,50,000, and drawings are Rs 20,000, what is the profit for the year assuming no additional capital?
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