2025 · Q82
Which one of the following statements is not correct?
General Accounting Principles, Auditing and InsuranceDepreciation
- ACapital account has a debit balance.
- BDiscount column of cash book records cash discount.
- CUnder traditional approach, rent outstanding is a personal account.
- DCash sales are not recorded in the sales day book.
Explanation
Statement A is not correct: the capital account normally has a credit balance, since capital is an owner's claim on the business. The discount column of the cash book does record cash discount, rent outstanding is a personal account (the landlord's) under the traditional approach, and cash sales are indeed not recorded in the sales day book.