creditor: ashok 13,500
what is the journal entry for -
paid to ashok by cheque in full settlement of his account - 13,000
Answers
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
- bank A/c - personal A/c , where bank is giver its credited as per rules
- ashok 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
Ashok A/c Dr 13500
To Bank A/c 13000
To discount received A/c 500
(Being full settlement made to ashok )
Hope its useful..!!
Answer:
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
bank A/c - personal A/c , where bank is giver its credited as per rules
ashok 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
Ashok A/c Dr 13500
To Bank A/c 13000
To discount received A/c 500
(Being full settlement made to ashok )
Explanation: