MCQ Practice

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

Subject: AccountingTopic: Accounting
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

Correct Answer: C