Question

Paid to Prakash cash 10,000 and a cheque of 35,000 in full settlement of his
account amounting to ? 47.500.​

Answer 1

Answer:

prakash account.......... dr. 47,500

to discount rec. /2500

to bank /35000

to cash /10000

Explanation:

prakash account first credited by 47500 rupees so now we have to debit his account with same amount to close his account . the amount which is given as discount now will be shown as discount rec. account and that is our indirect income it will shown as indirect income in p&l account.