Question

Paid to sita ₹965 in full payment of her due of ₹1000

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

• Sita A/c - personal A/c , she is the creditor and receiver of the money therefore its debited
• Discount received A/c - Nominal A/c , its the gain to us because we have  paid less than being payable   therefore its credited
• Cash A/c - real A/c , money goes out of the company therefore its credited

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Journal entry

Sita A/c     Dr           1000

       To discount Received A/c    35

        To Cash A/c                         965

(being Cash paid to sita in full payment )

* i assume its paid by cash

Answer 2

Sita A/C.  Dr Rs.1000     To Discount Received A/C Rs.35      To Cash A/C. Rs.965 (Being Sita A/C settled)