Question

Paid bilal and friends cash rs.975 discount recived rs.25

Answer 1

Answer-

cash A/c. _ _ _ _ _ _ _ Dr 955

discount received A/c _ _ _ _ _ _ _ Dr. 20 To Bilal and friend's A/c 970

Answer 2

Answer:

Bilal and friends A/c        Dr     975

          To Discount received A/c      25

           To Cash A/c                         950

Explanation:

Debit the receiver is what the rule says and here Bilal is the one receiving the cash. Thus we enter this in books by debiting Bilal A/c. Now discount received is a profit and thus the rule says Credit all incomes and gains. So we credit the amount of discount received i.e 25.

Cash is being given out in order to clear the due amount and thus it is credited as Cr what goes out.