paid to urmila rs 20,000 on behalf of sharmila
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If Urmila paid= rs 20,000
then behalf of Sharmila= 10,000
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i). Urmila a/c Dr. 20000
To cash. 20000
ii). sundry debtor a/c. Dr. 20000
To Sharmila a/c. 20000
Explanation:
- Journal entry is described as the chronological record of day-to-day payments.
- In the given situation, two journal entries need to be passed in order to pay to debtor Urmila on behalf of Sharmila.
- Firstly, the Cash account would be credited as the money goes out to Urmila, and later, Sharmila's account is credited as the amount goes out to the debtor's account.
Learn more: Journal Entry
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