cash received from sameer discount allowed journal entry
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Answered by
125
Cash A/C Dr.
Discount allowed A/C Dr.
To Sameer A/C
(Being Cash received and discount allowed)
Answered by
56
This transaction affects three accounts...
Cash a/c (Cash being received) ,Sameer a/c (he is paying cash) , Discount allowed a/c(Discount being allowed to him)
Cash account is a Real account (All assets and Liabilities come under it) , Sameer a/c is a Personal account, Discount allowed a/c is a nominal account (All expenses losses Gains income come under it)
The Three golden rules of accounting are
Personal account - Debit the receiver ,credit the giver
Real account - Debit what comes in ,credit what goes out
Nominal account - Debit All expenses and losses, credit All incomes and gains
In contention with the above rules...
Sameer is the giver ,so he should be credited.
Discount allowed is an expense to us, So it should be debited.
Cash is coming in, so It should be debited...
So the Journal Entry will be
Cash a/c Dr
Discount allowed a/c Dr
To Sameer a/c
(being cash is received from Sameer)
Cash a/c (Cash being received) ,Sameer a/c (he is paying cash) , Discount allowed a/c(Discount being allowed to him)
Cash account is a Real account (All assets and Liabilities come under it) , Sameer a/c is a Personal account, Discount allowed a/c is a nominal account (All expenses losses Gains income come under it)
The Three golden rules of accounting are
Personal account - Debit the receiver ,credit the giver
Real account - Debit what comes in ,credit what goes out
Nominal account - Debit All expenses and losses, credit All incomes and gains
In contention with the above rules...
Sameer is the giver ,so he should be credited.
Discount allowed is an expense to us, So it should be debited.
Cash is coming in, so It should be debited...
So the Journal Entry will be
Cash a/c Dr
Discount allowed a/c Dr
To Sameer a/c
(being cash is received from Sameer)
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