Question

Paid to govind rupees 7850 in full sttelment of his account

Answer 1

Explanation:

golden principles of accounting .

personal account rule

dr- the receiver.

cr- the giver.

real account rule

dr- what comes in.

cr- what goes out.

the journal entry will be.

govind a/c dr 8000

to cash a/c 7850

to discount received a/c 150.

( being cash paid to govind and discount received)

here govind a/c is debited because he is receiving the cash.refer personal account rule.

here cash a/c is credited because it is going out of the business. refer real a/c rule.

here discount a/c is credited because it is an income. refer nominal a/c rule.

nominal account rule.

dr- all expenses and losses.

cr- all incomes and gains.