Question

discount a bill of 600 for 590


please give cashbook entry​

Answer 1

Answer:

discount is received

Mohan’s a/c dr (full amount due)

To cash a/c ( amt due less discount received)

To discount received a/c ( discount amt)

Mohan was creditor hence liability which is paid so debited

Cash goes out so credited

Discount received is gain so credited

If no discount

Mohan’s a/c dr

To cash a/c

OR

To cash/bank a/c

Reason

Mohan is debited because he was our creditor and after paying it creditor(mohan) is reduced,and reduction is liability is debited.

Bank/cash is credited because reduction in assets are credited.

Explanation:

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