Question

Cash paid to harish in full settelment of acconts

Answer 1

Answer

The Journal Entry will be

Harish A/c      Dr

  To Discount Received A/c

   To Cash A/c

( Being Paid to Harish in full settlement )

                                                                                                   

Answer 2

The Hairsh account will be debited, whereas cash and discount account will be credited.

• A journal entry is the record of the various financial transaction of a business in its financial books.
• The transactions of a business are recorded in a journal, which indicates the debit and credit balances.
• The rule is to debit all costs and losses, credit all profits and gains, often known as debit the recipient, and credit the giver.
• These specific entries can help in the authentication of transactions and also helps to know if they are supported with bills.
• In the given statement, an amount of Rs. xxx is being paid for the full settlement of the account.
• Thus, the correct journal entry will be -

Harish A/c Dr          xxx

To Cash A/c.           xxx

To Discount A/c.     xxx

(Being Paid Rs. xxx in full settlement from Harish)

#SPJ2