Question

Journal entries in the book of sriRam Prakash Mahato
2016july 4. Final payment made to Subodh. Jha at 5% cash discount

Answer 1

Answer:

amount is not given

Explanation:

amount is not given

Answer 2

The cash discount will be ₹10000@ 5% = ₹500.

Explanation:

Given: Final payment made to Subodh Jha @ 5% cash discount.

• when the payment is made against cash, the seller may offer a cash discount to the customer.
• That discount will be made after the sale is conducted that's why the discount should be recorded in the books of accounts.
• Journal entry:-   Subodh A/c dr.   10000

                                         to cash A/c             9500

                                         to discount A/c         500

This question is incomplete because in the above question the amount is missing, so we assumed the amount to be ₹10000.