Question

1) 5-4-2020 Discount received rupees 300

what will be the journal entry .. my teacher give me this as a homework.. but I am Confused a little bit..
I have to submit this Today please help me !! ​

Answer 1

The journal entry will be as follows.

Explanation:

when we do journal entry, we always write any income the we receive in the credit side and any amount that we spent on expenses we will write it in the debit side of the journal. we receive discount when we pay a creditor of ours the amount we owe him and he gives us discount on that amount, this way we have to pay less than the original amount. that's why when we receive discount from a creditor while paying him money, it will be income for us, and I've written above all income that we receive, we will write it in the credit side,

so we will write discount received in the credit side of journal entry. the entry for discount received from creditor will be like this :-

creditor a/c    dr.     xx ( the total amount to be paid to creditor )

                 to cash a/c    xx ( the amount we actually pay after discount )

                 to discount received a/c    xx ( the amount of discount received )

( being amount paid to the creditor and discount received from him )