Question

Cash received from Swati In full settlement 4000

Answer 1

Answer:

To Swati a/c 5000

To Swati a/c 5000And Swathi is paying the entire 4000 rupees as a full settlement. Since we are getting an increment of cash we will debit cash account we will debit discount account as its an indirect expense to the firm and credit swati's account. This is based on the golden rule of accounting

Explanation:

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Answer 2

Explanation:

To Swati a/c =5000

And swati is paying 4000 rupees as a full settlement