Question

pass the necessary journal entries for the following transactions April 20 Ramesh settled his account by issuing cheque including rs 60 for interest 12,000​

Answer 1

Answer:

Journal entry :

 Bank a/c                                     Dr           11940

 Discount a/c                               Dr               60

             To Ramesh a/c                                                         12000

*Assuming that Ramesh is debtor he settled his account of 12000 by cheque and we allowed discount of 60