Question

if cash paid to rohit in full setement $48500 and liability was for $50000 then how to entry it while making accounting equation Reply fast guys​

Answer 1

hey mate here is your answer...

rohit a/c dr 50000 --

to cash a/c -- 48500

to discount a/c -- 1500

(being cash paid to rohit in full setement )...

hey mate we have to pay 50000 but we had paid only 48500 in full setement of 50000,so 1500 will be the discount received by us...