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What is the 4th answer. Please give explanation too

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SUBODH M JAIN

SUBODH M JAIN

CA Inter

2K+

20-Apr-23 15:56

154

Answers (2)

Best Answer

Option C. While paying creditors: 1.Cash goes out ( Asset decreases) 2. Creditor gets the payment, so decrease the amount as dues paid( liability decreased) . 3. Discount received indicates our due amt is decreased by him which is gain to us. ( Treat it as revenue)


Shankara Vel

Shankara Vel

CA Inter

4K+

20-Apr-23 17:51

All the Best