Question

Cash received from upkar in full settlement of account

Answer 1

Answer:

Golden Rules of Journal

Personal account rule

Debit- The receiver.  

Credit- The giver.  

Real account rule

Debit- What comes in.  

Credit- What goes out.  

Nominal account rule

Debit- All expenses and losses.  

Credit- All incomes and gains.  

Now

The Journal Entry will be

Cash A/c    Dr

Discount Allowed A/c   Dr

        To Upkar's A/c

(Being Cash received from upkar in full settlement of account)