Question

Cash paid to rabin rs 24000 in full settlement Journal entries

Answer 1

Answer:

Creditor A/C 24000

To Cash A/C 24000

Explanation:

When an asset decreases we credit it

When an asset increases we debit it

When a liability decreases we debit it

When a liability increases we credit it

We have paid cash

so asset decreases,

so credit Cash A/C with 24000

Our liability is our Creditor Rabin

and when we pay him back

our liability decreases,

so debit Creditor A/C with 24000