Concept:A cash discount allowed to a debtor is an expense to the seller, recorded in the discount allowed account.
Explanation:Alaka is Saka’s debtor because Alaka owed Saka
#15,000.
When Alaka paid after deducting
10% discount, Saka allowed a discount of
10%×#15,000=#1,500.
This discount is a discount allowed for Saka, not a discount received.
In Saka’s books, the discount allowed account is debited because it is an expense.
Alaka’s account is credited to reduce the amount owed by Alaka.
Therefore, the correct double entry is: debit discount allowed account and credit Alaka’s account.
Answer:D. discount allowed account and credit Alaka's account