Question

Jan14 Paid cheque to roy in full settlement rupees 9000

Answer 1

Roy Dr. 9000

To Bank A/C 9000

Answer 2

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

Roy 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..

Roy should be debited (he is the receiver)

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

So the journal Entry will be...

Roy Dr 9000

To Bank a/c. 9000

(Being amount due to Roy settled )