Question

journal entry for paid cash to Chandarkant 13780 and discount allowed by him 220

Answer 1

Chandarkant dr. 14000
to discount received 220
to cash account 13780
( being cash paid to chandarkant)

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Chandarkant A/c - Personal account , hes the creditor where he receives cash from us , hes the receiver thus its debited

Cash A/c- Real A/c , money Goes out of the company therefore its Credited

Discount Received - Nominal A/c , its a indirect income to the company or gain to the company therefore its credited .

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Journal entry

Chandarkant A/c Dr 14000

To Cash A/c 13780

To Discount received A/c 220.

(being cash paid to chandarkant )

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