Question

Cash paid to Sudhir 26700 discount Rashid allowed him 300

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

Question analysis

3 accounts affected

cash A/c - real A/c , where cash goes out of company so its credited as per rules

Sudhir a/c - personal a/c , hes the receiver of cash therefore hes debited as per rules

discount received - nominal account - its a income therefore its credited

Journal entry

Sudhir A/c Dr 27000

To Cash A/c 26700

To discount received A/c 300

(Being full settlement made to Sudhir )

Hope its useful..!!