Question

Cash paid to ramesh in full settlement of his account

Answer 1

Answer:

Correct option is

A

Rs 1000

Journal Entry :

Cash A/c Dr. 975

Discount Allowed A/c Dr. 25

To Shyam A/c 1000

(Being Received Rs 975 in full settlement from Shyam.)

Therefore, shyam's A/c is credited with Rs.1000.