Question

Paid to madanlal rs.9800 in full setalment off rs.10000

Answer 1

Paid to madanlal 9800rs

In full settlement of 10000rs..

Discount recieved= 10000-9800 = 200.

cash paid = 9800.

Reciever is Madanlal..

Entry is..

Madanlal a/c Debit 10000

To cash a/c. 9800

To Discount recieved a/c 200

(Being money paid back to madanlal)

Asset is decreasing.so Cash is credited..

Discount Receiver is an income..so it is credited

Madanlal is the receiver..so he is debited..