24 Received a cheque from Mariam to settle her debt of $520, less 2½% cash discount
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Answer:
Bank A/C Dr 507
Discount A/c Dr 13
To Mariam Dr 520
(Being settlement done with Mariam with discount allowed)
Explanation:
Why bank has been debited: Bank(Asset) increased.
Why Discount has been debited: Discount (expense) has been incurred.
Why Mariam credited: Mariam(Debtor) has been decreased.
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