Question

Cash paid to Gopal Rs.2800 after deduction cash discount 10%

Answer 1

total Amount payable= 10000

Discount recieved = 5%

actually paid

10000 - 5% = 9500

so Discount recieved= 10000 - 9500 = 500..its a gain to us....

The transaction affects three accounts... gopal account (we owe money) , Cash a/c(paid 9500 ) , Discount recieved a/c( recieved 5% Discount;500 )..

gopal account is a Personal account (as the name suggests)

cash account is a Real account (All the assets and Liabilities come under Real account; cash is an asset)

Discount Recieved is a nominal account (All expenses incomes gains losses come under nominal account and Discount recieved is a gain)

The Three golden rules of accounting are..

Personal account - Debit the receiver credit the giver..

Nominal account - Debit All expenses and losses, credit All incomes and gains

Real account - Debit what comes in ,credit what goes out.

in contention with the above rules..

gopal should be debited (he is the receiver)

Discount Recieved hould be debited (its a gain)

Cash should be credited (it is going out).

So the journal Entry will be...

Gopal Dr 10000

To Discount recieved a/c 500

To cash a/c. 9500

(Being amount due to Gopal settled )

Answer 2

it is an payment

cash comes under real a/c

so real a/c rule is

dr- what comes in

cr- what goes out

so write in credit side of the cash book in cash column as 2800

and in discount column as 311

(because cash paid is 2800 after deducting discount

so, 2800× 100/ 90 is the actual amount payable I.e rs.3111

and discount is 10% of rs.3111)

hope u understand

if u still have any doubt then comment on the comments section.

follow my brainly a/c for future needs....