Posting Cash Book Discount Totals to Ledger Steps:

• Review cash book: discount allowed column total represents expense to business.
• Post discount allowed total by debiting Discount Allowed account (nominal expense account).
• Review discount received column total represents income to business.
• Post discount received total by crediting Discount Received account (nominal income account), forming compound entry.

Why C is correct:

• Debiting Discount Allowed records expense per double-entry rules (debit increases expenses); crediting Discount Received records income (credit increases income).

Why the others are wrong:

• A reverses debits/credits, incorrectly treating expense as income and vice versa.
• B uses invalid "discount statement" accounts, which do not exist in standard ledger.
• D swaps accounts, debiting income and crediting expense against nominal account rules.

Final answer: C