Question

Issued to singh and co. A cheque in full settlement

Answer 1

Singh and Co. Dr.

To Bank A/C

Answer 2

The transaction affects two accounts... Singh and co. account (we owe money) , Bank a/c(paid 9000 via Cheque)

Singh and co. account is a Personal account (as the name suggests)

Bank account is a Real account (All the assets and Liabilities come under Real account; Bank is an asset)

The Three golden rules of accounting are..

Personal account - Debit the receiver credit the giver..

Nominal account - Debit All expenses and losses, credit All incomes and gains

Real account - Debit what comes in ,credit what goes out.

in contention with the above rules..

Singh and co. should be debited (he is the receiver)

Bank should be credited (cash in bank is going out).

So the journal Entry will be...

Singh and co. Dr ××××

To Bank a/c. ××××

(Being amount due to Singh and co. settled )