Multiple choice

The consignor drew a bill on consignee as advance for the goods sent to him. The bill is discounted from the bank. The amount of discount will be

  1. debited to consignment account

  2. debited to consignee account

  3. debited to profit and loss account

  4. credited to profit and loss account

  5. trading account

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is the correct answer as discount is a financial expense. So, it should be debited.