WAEC Accounting 2017 Paper

Concept:An excess discount allowed must be reversed by reducing the expense and increasing the customer's balance.Explanation:Correct discount allowed is $10\%$ of $\mathrm{N}100{,}000 = \mathrm{N}10{,}000$.Discount wrongly recorded is $20\%$ of $\mathrm{N}100{,}000 = \mathrm{N}20{,}000$.Excess discount allowed is $\mathrm{N}20{,}000 - \mathrm{N}10{,}000 = \mathrm{N}10{,}000$.Discount allowed was overstated by $\mathrm{N}10{,}000$ on the debit side.The customer's account was also over-credited by $\mathrm{N}10{,}000$.To correct this, debit the customer's account with $\mathrm{N}10{,}000$.Then credit discount allowed with $\mathrm{N}10{,}000$ to cancel the excess expense.Answer:C. customer's account with $\mathrm{N}10{,}000$, crediting discount allowed with $\mathrm{N}10{,}000$.