Question

mohan issued a cheque of rs 12400 and we allowed a cash discount of rs 600
journal entry​

Answer 1

Answer:

The answer is in the explanation section.

Explanation:

Bank A/c Dr.                             12400

Discount allowed A/c Dr.            600

             To Mohan A/c             13000

(Being Mohan issued a cheque and we allowed cash discount)

Extra information:

Mohan paid to us as he is our debtor. He has paid to us in full settlement of his account and we allowed him a cash discount because he must have paid to us before the due date.

Hope this helps :).