Question

journal entries of -(i)Received cash 2,500 from Rao Bros. in full settlement of 2,600 due from them. (ii)Paid cash 1,500 to Chari & Co. in full settlement of 1,650.​

Answer 1

Answer:

1.) Cash A/c. Dr. 2,500

Disc. allowed A/c. Dr. 100

To Rao Bros. A/c. 2,600

( Being cash received from Rao Bros. in full settlement after allowing discount.)

2.) Chari & Co. A/c. Dr. 1,650

To Cash A/c. 1,500

To Disc. recd. A/c. 150

(Being cash paid to Chari & Co. in full settlement after receiving discount.)

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