Question

journal entry for paid rs.3950 to kishor and earned cash discount rs.50​

Answer 1

Answer:

The percentage of cash discount is mentioned in payment terms. For example, the terms 2/10, n/30 means a 2% discount will be allowed if the payment is made within 10 days of the date of invoice, otherwise, the full amount is to be paid in 30 days. Journal entry for cash discount. Cash discount is an expense for seller and income for buyer.

Explanation:

Answer 2

discount AC _____ Dr 50

to Kishore AC _____ cr. 3950