Question

Amount paid to jeevan traders 20000 in full settlement of his account.​

Answer 1

Explanation:

journal is a book which records all the business transactions.

Before recording any transaction it is important to know the GOLDEN RULES OF ACCOUNTS. If you already know it, you are a step ahead of others. For those who do not know, they are as follows:

PERSONAL ACCOUNT:

Debit — Comes in

Credit —Goes out

REAL ACCOUNT

Debit— The receiver

Cretit — The giver

NOMINAL ACCOUNT

Debit— All expenses and losses

Credit — All incomes and gains

Explanation of the transaction:

Let us predict that I am Mahesh and you are the purchaser. You purchased a bundle of books from me worth 8000. But, as you purchased it on a larger scale I provided you with a discount of 100 rupees. So, you have to pay only 7900.